Yesterday's closing bell marked another day in which markets have completely disagreed with the EU officials and Irish Government view of the reality of our and PIIGS' ability to weather out the current crisis.
Friday, November 26, 2010
Economics 26/11/10: Contagion is spreading to Spain & Italy
Another day, another spike of contagion from Ireland's Sovereign bonds to other Eurozone countries:
Yesterday's closing bell marked another day in which markets have completely disagreed with the EU officials and Irish Government view of the reality of our and PIIGS' ability to weather out the current crisis.
Yesterday's closing bell marked another day in which markets have completely disagreed with the EU officials and Irish Government view of the reality of our and PIIGS' ability to weather out the current crisis.
Short and sweet Constantin. When will policy makers listen to people with the intelligence to disect real information present it in ways that we can all understand. The dogs in the street know the EU and the Irish "Government" have been adopting the wrong policies for about 2 years now. It reeks of a "sweep it under the carpet mentality". This problem will NOT go away by throwing money and by exstension, debt at it.. In fact quite the opposite.
ReplyDeleteC.....I recall a conversation that we had about 3 years ago discussing this very issue and how it would play out. So far so good. Traders know that higher yields on Portuguese and Spanish debt is a one way ticket to profits. The self-fulfilling prophecy of how the EU 'crisis' fund and bond market work mean that the Euro may not be toast, but.....
ReplyDeleteGod, I wish I had a million and a high margin trading account with it.....or just good letters of credit to trade this......
And don't forget that Belgium is starting to move in the same direction as well...
ReplyDeleteWe're at the top of a long, long tumble and still, the powers that be deny, deny, deny. It's like watching Munch's The Scream come alive. Slowly. Painfully. At least the snow is beautiful...
ReplyDeleteRight on Constantine.
ReplyDeleteMedia blaming the markets is like blaming a wolf-pack for following its instincts.
Does no one remember the market frenzy of 1966-1973 when market-driven panic drove world currencies wild.
A new era of penal laws looms - albeit economic rather than political but all the more destructive and enslaving for that very reason.
Edward Moran
Thanks for the great commentaries, Constantin. May I share with you my brief debate with a friend of how to fix Spain's problems -- tinker with the Euro, or tinker with heavy state regulations, http://funwithgovernment.blogspot.com/2010/12/spanish-problem-euro-or-state.html
ReplyDeleteVery worrying indeed. But the ECB might be doing something to stop this later. I wonder if that's a good idea to go against ECB then.
ReplyDeleteAlso sprach Analyst