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ralphmalph

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http://www.telegraph.co.uk/finance/financetopics/financialcrisis/7831117/Spain-plays-high-stakes-poker-game-with-Germany-as-borrowing-costs-surge.html

I always look forward to these.

Summary Spain is being villified by Germany because Spanish banks are solvent and Germans banks are bust and the Germans want to hide the fact. Basically I agree.

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Sounds like complete nonsense.

The Spanish financial sector is in trouble. Not so much the big banks like Santander but the regional Casas. The property crash has wiped these guys out. These guys bought all the property valuation agents to keep up the prices and even that isn't working.

The German banking sector is mostly solid. However, you'd guess that a few Landesbanks have taken a big hit since they love buyng any dodgy asset that yield more than euribor flat when swapped up.

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Sounds like complete nonsense.

The Spanish financial sector is in trouble. Not so much the big banks like Santander but the regional Casas. The property crash has wiped these guys out. These guys bought all the property valuation agents to keep up the prices and even that isn't working.

The German banking sector is mostly solid. However, you'd guess that a few Landesbanks have taken a big hit since they love buyng any dodgy asset that yield more than euribor flat when swapped up.

You say it is complete nonsense and then make every point that AEP made to prove his point.

He says - Main Spanish banks fine -Cajas in trouble. You say the same.

He says German banks full of toxic assets - you say German banks love buying dogey assets (same)

Have a look at ftalphaville and there running commentary of German ban assets - they call it the German bank Asset-Berg.

http://ftalphaville.ft.com/blog/2010/03/18/177361/germanys-bank-asset-berg/

Edited by ralphmalph

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Basically I agree.

So do i.

The most toxic aspect of the current crisis is that the USA with its trillion dollar deficits and gernmay with its chronically demand and demographically challenged economy with banks exposed to PIIGS and east europe are somehow safe havens. They are not. And neither are the swiss, who have the most indebted household sector on the continent and a bank sector external debt similar to the UK but with a smaller overall economy.

Until we shed ourselves of this nonsense of safe haven and recognise that there are no safe havens there is not going to be any lasting resolution to al this, which can only come via the managed default on existing liabilities.

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Sounds like complete nonsense.

The Spanish financial sector is in trouble. Not so much the big banks like Santander but the regional Casas. The property crash has wiped these guys out. These guys bought all the property valuation agents to keep up the prices and even that isn't working.

The German banking sector is mostly solid. However, you'd guess that a few Landesbanks have taken a big hit since they love buyng any dodgy asset that yield more than euribor flat when swapped up.

Don't worry about the Spanish Cajas. They are merging the bad ones with the good ones in order to make the bad debts disappear. Like what Gordon Brown did with HBOS and Lloyds.

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ALL the banks in Germany AND Spain are insolvent.

yet none of them are.

Not a lot of people know that...now, wheres Debbie Mcgee?..He he.

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This is why we refer to such events as this as a global systematic crisis. They are all in effect wedded through debt and all this rumbling about who is more stable than the other simply shows that there is still abundant misunderstanding about this. Even creditor nations like China are infected because they can't actually "spend" their "reserves" without side effects that will kill off their entire economic model overnight.

Complacency, incompetence and greed have combined to completely FUBR the global economy and this is the Wiley Coyote moment before we hurtle down the cliff face with a look of terrified realisation.

Brace yourself.

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This is why we refer to such events as this as a global systematic crisis. They are all in effect wedded through debt and all this rumbling about who is more stable than the other simply shows that there is still abundant misunderstanding about this. Even creditor nations like China are infected because they can't actually "spend" their "reserves" without side effects that will kill off their entire economic model overnight.

Complacency, incompetence and greed have combined to completely FUBR the global economy and this is the Wiley Coyote moment before we hurtle down the cliff face with a look of terrified realisation.

Brace yourself.

Funny thing is, it's often worse to be a big creditor nation in times like this. After all, we already have the German and Chinese goods - they just have out paper promises.

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  • 152 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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