Wednesday, May 9, 2012


Well, there will be no Communist-led colalition government in Greece.  An attempt to form a government failed today and there is but one more try remaining before we go back to new elections in a month with a positiive result in that go-around no more certain than what we have now.  Markets briefly rallied on news that the Greeks were about to get 5.2 billion Euros in "emergency funding" tomorrow but a closer look showed it to be the final tranch of the last bail-out package meaning Greece still goes broke at the end of June (technically, it's a bit before that) but close enough for government work.  Germany issued a "stern" warning to Greece to get it's house in order and most of the the great high financial poo-bahs from around the world who had met in Switzerland over the weekend got home today expressing the view that they had done all they could do and it was now up to the politicians.  In short, we're doomed.

The great unfunding of Euroland's financial institutions continues apace with liquidity flowing towards the Bund and towards Treasuries. I guess the ECB can print money until the cows come home but you really have to ask yourelf how long can this go on.  I don't have an answer.  Nor do I understand how the Euro can maintain it's level other than by saying it"s a sign that no other economy is in much better shape.

Finally, to close out an otherwise thououghly negative-vibe day, The Leader announced that he was in favor of same sex marriage.  Statesmanship on call.  I can't go on.  Back tomorrow hopefully in a better mood.  Sorry.

1 comment:

  1. What, you missed the big story of the day! Your Fed buddies are letting the godless pinko Commie Chinese buy American banks now!

    CIC says they are no longer buying Euro govie paper, but do want our banking 'em up.

    Guess they couldn't get them to buy the Charlotte mess.

    Wonder what the quid pro quo is? If all we got is the ability to buy larger shares (but still minority stakes) in Chinese brokerages, it doesn't seem like a good deal.