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ECONOMICS – FINANCE – WORLD NEWS – GREEK DEBT

Christine vs Angela: another fight of the titans

Another Friday, another fight of another pair of titans. This time: Christine Lagarde vs Angela Merkel. We all know Mekel’s view on eurobonds by heart at this point, but Lagarde has just launched a new attack. Her main point: more money for everyone, detailed in this IMF memo. The whole eurobond extravaganza would presumably fall under long-term structural reforms. In the short-term, however, all available funds would just be poured into the emerging wholes in the [banking] system. But hang on a minute, she may well be French, but Lagarde is not acting on behalf of Europe here. If anyone is, it’s probably Merkel. Looks like the latter is being squeezed off her throne… read article Also, it kind of reminds us once more of the quota formula issue at the IMF, which denotes the distribution of voting rights and contributions from member countries. read article

All this is overshadowing the meeting of Monti, Merkel, Rajoy and Hollande in Rome this afternoon. (Reuters is bringing us the best possible picture for it; click here) We shall see what this pre-summit summit brings. Mario Monti sure has managed to preemtively add a sour taste to it all, when he declared the inexorable onset of a political and economic death spiral in case next week’s EU meetings don’t yield a practical solution [I repeat, practical!]. read article

Moody’s downgraded every bank they could find, reminding me of an interview I had back in December, where I was told that there is no such thing as a triple-A-rated bank and we should stop pretending there ever was or will be. To mark the event, the FT wrote an obituary of global banks as we know them. read article

After yesterday’s meeting of the Eurogroup, word got out that Spain may need more than the €100bn it already got to save its banks. Surprise! It is estimated that the country could face a €52-62bn capital hole if the economic downturn continues. In other words, Spain is facing a €52-62bn capital hole and something has to fill it. read article

Meanwhile, Larry Ellison, CEO of Oracle, bought 98% of the Hawaiian island Lanai. He probably could have gotten all of the Aegean Sea for the same price, which remained undisclosed but was estimated to be “a ton a money.” (actual quote on Bloomberg: “hundreds of millions of dollars”)

Have a good weekend!

May the more economically stable country win the game tonight (…), I’m expecting at least this. New Greek Prime Minister Antonis Samaras won’t be able to watch, by the way, he was hospitalized with a retinal detachment issue today.

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One Response

  1. princess1960 says:

    thank you .. HAVE A GOOD WEEKEND TOO..i am with K MARX

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