Death Star Economics



Don’t worry about Europe, it’s all taken care of…

Yesterday’s headline on Reuters was “World leaders back Greece, vow to combat financial turmoil“. Oh that’s nice. So it’s all taken care of then…

The bottom line, however, was the agreement of the G8 that Greece should stay in the eurozoneCameronvoiced his support of a stronger role of the ECB in form of quantitative easing. Obama also tried to get Merkel out of her super austerity position, leading to an agree-to-disagree kind of situation with an official statement reading “the right measures are not the same for each of us.” And then they all watched soccer togetherread article

On Wednesday, an unofficial EU summit will be held (not sure what makes it unofficial, it looks a lot like all the other ones…) to discuss a lot of whens and ifs regarding the size of the European bailout fund (old issue), eurobonds(really old issue) and a lender-of-last-resort kind of role for the ECB (sort of an old issue). Hollande is the one who brought up eurobonds again. Before, Mario Monti of Italy, Mariano Rajoy of Spain and Jose Barroso, president of the European Commission had backed the idea, but had been shot down by Angela Merkel. This might change soon, turning Germany into the odd one outread article

Meanwhile, Alexis Tsipras, leader of Syriza, played the rationality card in an interview with Reuters, saying

Yes we do want Europe’s support and funding, but we don’t want the money of European taxpayers to be wasted. Two bailouts in a row went into the dustbin, into a bottomless barrel. If this continues we would need a third package in six months. European and their leaders must realise this.

I feel like they do.

It’s all not going so well for Facebook. Yes sure, the company raised $16bn in Friday’s IPO, pushing thecompany’s valuation to $105bn, but the share price only gained 0.6% on the first day, far less than expected. Now, different media sources are debating: was it a failure, or are we getting this all wrong?

And while Mitt Romney is campaigning around the US, his former business partner and biggest campaign donor Edward Conard is busy revolutionizing economic thought: the case for income inequality – from the 0.1% to the 99.9%… read article

So long.


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2 Responses

  1. The Fundamentals about the Euro Zone are very Good and the Region is very Dynamic like the rest of Asia especially Australia India and Japan.

    I have just invested in Canadian Dollars in Switzerland and it will pay off by the Year 2016 0r Year 2019.

    America is a worse mess because of the Subprime Crisis and She must do a radical Change over of the Free Market.

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