Death Star Economics



The German Largesse and Fairness

Angela Merkel and Nicolas Sarkozy are meeting in Berlin today (starting around 1.30 pm CET). On the agendasaving the eurozone, i.e. putting those budget rules in concrete words. This meeting, which again carries all hopes and dreams of the world economy, will be followed by Merkel and Sarkozy travelling to Rome on 20 January and a EU summit on growth [as a concept] on 30 January. read article

Meanwhile, the Belgian government, which took more than 19 months to be assembled, is embarrassing itself with a poor budget and missed targets. This might end up with sanctions, if severe spending cuts don’t do the trick.

But today is also judgment day for the financial transaction tax. In the right cornerMerkel and Sarkozy, who seek agreement, but really want different things (Merkel wants a EU-wide tax, Sarkozy vowed to go ahead with a French tax if a European solution doesn’t work out). In the left cornerDavid Cameron, who, after making an ass of himself in December, seems to have lost all motivation to play nice with anyone. On Sunday, he said in London that he would do anything to veto an EU tax on financial transactions, unless it was adapted globally; clearly, 27 countries are not a good enough start. Right. I’m sorry, globally?! IN EVERY COUNTRY?! This man needs to stop being a politician (or the guy who constructs these arguments needs to get fired). When asked about Britain’s isolation from the EU, Cameron complained that the eurozone countries have been meeting without the UK for years. I hope somebody told him the reason for that is that the UK is not IN the eurozone. read article

A post about a post about a study about executive pay. Remember when everybody said bankers shouldn’t get bonuses because they encourage risk takingThink again, says the study; no correlation, says blog post #1; hang on, you don’t know shit about finance says The Epicurean Dealmaker. read article

Other absurd news: Germany sold some 6-month bunds today… with a negative yield (for the first time!), which means that it costs investors money to lend money to Germany. Safe haven, anyone? read article

Random fact of the day (stolen from WSJ MarketBeat): today is the iPhone’s 4th and iTunes 10th birthday.

So long.


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One Response

  1. Greg Rampinelli says:

    Where’s the largesse and fairness?

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