Jump to content
House Price Crash Forum
Realistbear

Helicopter Trichet To Flood P I I G S With Cash

Recommended Posts

http://uk.finance.yahoo.com/news/ecb-focus-south-s-cash-addiction-to-force-continuing-ecb-drip-reuters_molt-cb3620eca1fa.html?x=0

ECB focus - South's cash addiction to force continuing ECB drip
Sakari "Sacky" Suoninen, 13:43, Friday 20 August 2010
FRANKFURT (
Reuters
) - The European Central Bank will have little option but to
keep flooding the money market with cash
to aid banks and governments in the common currency area's troubled southern periphery, despite robust growth in the core.

Trichet must be firing up those helipcopters ready to flood the PIIGS with enough cash to keep the plates spinning for a few more months. This may be the beginning of the second big Euro dump.

___________________________

http://uk.finance.yahoo.com/news/greek-crisis-refuses-to-go-away-tele-36115457217d.html?x=0

Greek crisis refuses to go away

Ambrose Evans-Pritchard, 13:07, Friday 20 August 2010

The European Commission has approved the next 9bn (£7.4bn) tranche of loans for Greece but the underlying economy continues to deteriorate as Greek banks suffer a record loss of deposits and output contracts at a quickening pace.

Edited by Realistbear

Share this post


Link to post
Share on other sites

Why give these loans to countries that have no chance of paying them back.

Might as well just gift them 'free' money , straight off the printing press.

Share this post


Link to post
Share on other sites

Why give these loans to countries that have no chance of paying them back.

Might as well just gift them 'free' money , straight off the printing press.

The consequences of not flooding them with money is the end of the Euro.

Share this post


Link to post
Share on other sites

Trichet must be firing up those helipcopters ready to flood the PIIGS with enough cash to keep the plates spinning for a few more months. This may be the beginning of the second big Euro dump.

The Eurozone is heading for disaster with policy like this. Not long now before Merv 'Xerox' King turns the taps on over here.

Edited by MrFlibble

Share this post


Link to post
Share on other sites

The consequences of not flooding them with money is the end of the Euro.

But ironically the consequence of endless printing will be the end of the Euro :lol:

Still it takes the attention away from our diabolic situation for a while.

Share this post


Link to post
Share on other sites
Guest UK Debt Slave

The consequences of not flooding them with money is the end of the Euro.

The money power is so heavily invested in the EU project, they cannot possibly allow it to fail....................no matter how bad the consequences are for the southern European states.

Scorched earth here we come.

F**king morons

Share this post


Link to post
Share on other sites

The consequences of not flooding them with money is the end of the Euro.

Don't be such a drama queen. The consequences of not extending yet more credit to insolvent institutions and nations is for them to default. The euro would survive if Greece left, and even if Portugal, Spain, Ireland, and Italy left. The entrance criteria weren't strict enough, this is the consequence. It's also entirely possible that the more responsible PIIGS (e.g. Ireland) might decide on an honest default rather than leaving the euro and devaluing their new currency.

Share this post


Link to post
Share on other sites

Don't be such a drama queen. The consequences of not extending yet more credit to insolvent institutions and nations is for them to default. The euro would survive if Greece left, and even if Portugal, Spain, Ireland, and Italy left. The entrance criteria weren't strict enough, this is the consequence. It's also entirely possible that the more responsible PIIGS (e.g. Ireland) might decide on an honest default rather than leaving the euro and devaluing their new currency.

Maybe not directly end the Euro but there could be a domino affect.

Say Greece defaults, German banks take the hit, Merkel has to bailout German banks, German taxpayers upinarms, demand that Germany leaves the Euro and goes back to the Mark (no more bailouts to lazy south med countries - remember the headlines in the German tabloids in Feb) as a condition of their votes at the next general election, markets lose faith in the Euro because of no German backing anymore. Euro becomes a toilet paper currency (actually helps the PIIGS), rush by major countries France, NL, Germany, Italy to get their own currency back. Effectively the end of the Euro.

Share this post


Link to post
Share on other sites

I think that's about right.

If the rim defaults the banks in the core go bust unless the ECB prints money.

So why not print money before your core banks go bust?

The hope is that the rim reforms and the crisis can be navigated.

X months in and hearing about the effort the Irish and now the Greeks are making I begin to be optimistic.

Anyone got any news about Portugal and the big guys, Italy and Spain?

When talking about the core one should bear in mind that things in France are nowhere near as healthy as the French would have you believe.

And as far as I know, no one is doing much about France's structural issues.

I think the interesting difference between the French-German and the Anglo-Saxon routes to this mess is that the Anglo-Saxons got here on bad loans to their own citizens but the French-Germans did it with bad loans to other peoples governments.

Edited by indirectapproach

Share this post


Link to post
Share on other sites

Sooo

everything going as anticipated or told by likes of cgnao

US QE lite ticked

EU unlimited ticked

BoE QE TBA

leading to hyperinflation,

good times ahead.

Share this post


Link to post
Share on other sites

Maybe not directly end the Euro but there could be a domino affect.

Say Greece defaults, German banks take the hit, Merkel has to bailout German banks, German taxpayers upinarms, demand that Germany leaves the Euro and goes back to the Mark (no more bailouts to lazy south med countries - remember the headlines in the German tabloids in Feb) as a condition of their votes at the next general election, markets lose faith in the Euro because of no German backing anymore. Euro becomes a toilet paper currency (actually helps the PIIGS), rush by major countries France, NL, Germany, Italy to get their own currency back. Effectively the end of the Euro.

The real loser if Greece defaults is France. French banks are owed about €75bn by Greece. Remember Sarky had to strong-arm Merkel to bail out Greece by theatening to take France out of the Euro. The French government couldn't afford to rescue its own banks. :o

Share this post


Link to post
Share on other sites

And nor can ze Jermans but the ECB can.

But this will not result in hyperinflation because the money magicked into the system does not make its way into the hands of the man on the Pireas omnibus and thanks to the production capacity of emerging economies, we are in a new supply paradigm.

Edited by indirectapproach

Share this post


Link to post
Share on other sites

If there is another big QE hand out, the Germans are likely to ask for a fair share of the free money.

If you're giving Greece, €100bn, surely Germany should get €100bn too.

Share this post


Link to post
Share on other sites

That would seem fair but I don't think it's about fair.

If those lovely generous Jermans don't print Greece €100 bill', they lose what ....? > €1 trill ....?

Because the French banks have gone down and probably dragged the Jerman ones with them too.

And I think that's not counting the Landesbanke who have kybosch all over their balance sheet thanks to bad loans to the East, let alone South.

Share this post


Link to post
Share on other sites

The Eurozone is heading for disaster with policy like this. Not long now before Merv 'Xerox' King turns the taps on over here.

It isn't a policy though , what you have quoted is something that realistbear made up.

Share this post


Link to post
Share on other sites

Its a ciruclar bailout for their own banks. Who do you think owns all that PIIGshit? German and French banks, they may as well simply give them free cash directly, but hey...someone might notice that way.

Share this post


Link to post
Share on other sites

Don't be such a drama queen. The consequences of not extending yet more credit to insolvent institutions and nations is for them to default. The euro would survive if Greece left, and even if Portugal, Spain, Ireland, and Italy left. The entrance criteria weren't strict enough, this is the consequence. It's also entirely possible that the more responsible PIIGS (e.g. Ireland) might decide on an honest default rather than leaving the euro and devaluing their new currency.

The "Euro" is the currency of the EU. Knock out the PIIGS and it becomes the currency of something other than the EU as presently constituted.

This is not drama--this is reality. If you are holding Euro's it might be a convenient moment to dump them.

Edited by Realistbear

Share this post


Link to post
Share on other sites

http://uk.finance.yahoo.com/news/dollar-recovers-all-eyes-on-yen-afp-08bceec193f8.html?x=0

In late London trade, the euro fell to 1.2687 dollars from 1.2821 dollars in New York late Thursday. Against the Japanese currency, the dollar rose to 85.63 yen from 85.38 yen on Thursday.

Pound breakign near 1.23 to the Euro which suits as I have a break in Portugal coming very soon. :D

Share this post


Link to post
Share on other sites

http://uk.finance.yahoo.com/news/dollar-recovers-all-eyes-on-yen-afp-08bceec193f8.html?x=0

In late London trade, the euro fell to 1.2687 dollars from 1.2821 dollars in New York late Thursday. Against the Japanese currency, the dollar rose to 85.63 yen from 85.38 yen on Thursday.

Pound breakign near 1.23 to the Euro which suits as I have a break in Portugal coming very soon. :D

holding well against the $ though @ 1.5528 rather surprising we had one or two bad news.

Share this post


Link to post
Share on other sites

If you are holding Euro's it might be a convenient moment to dump them.

That could well be terrible advice. If there are big defaults to come that should raise, not lower the value of holding euros.

Share this post


Link to post
Share on other sites

That could well be terrible advice. If there are big defaults to come that should raise, not lower the value of holding euros.

In a contrarian market I would agree with you as bad news is a buy signal. Massive defaults and overwhelming debt and consequential printing would normaly not do wonders for a currency but recent times have shown that debt is good and debasing your currency is even better.

That may be changing though.

Edited by Realistbear

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 140 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.