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Lundi Noir-- Black monday for the global markets


Trampa501
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One way or another, there surely has to be a reaction to the French election on Sunday?

Isn't it Bank Holiday on Monday? Maybe Tuesday noir, or whatever the feck Tuesday is in French. Do the French even have bank holidays? Maybe they have bank working days, not sure which is the exception. Either way, their cars are sh!t.

Lazy [email protected]

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Ireland follows on May 31st - regionals in Germany & Italy this weekend also

European election results to reshape fiscal treaty debate

http://www.irishtimes.com/newspaper/frontpage/2012/0505/1224315653619.html

EUROPE IS braced for change and uncertainty as the people of France and Greece cast judgment on their leaders this weekend, votes with potential to reshape the political landscape in the third year of the debt crisis.

French socialist François Hollande leads incumbent Nicolas Sarkozy before the final round of votes tomorrow in the presidential election. Victory for Mr Hollande would realign the Franco-German axis, which dominates the response to the debt crisis, and add momentum to the clamour for new measures to promote economic growth.

At the same time, the rapid ascent of anti-bailout parties in the Greek election has raised fresh questions over the viability of the second EU-IMF rescue plan for the country.

European sources say any failure by the new Greek government to execute the agreed austerity programme would halt the release of rescue loans, something which would trigger a new wave of turmoil on debt markets.

Regional and local elections in Germany and Italy this weekend will also test the public mood in those countries. These polls come days after British voters dealt a blow to prime minister David Cameron

As Europeans grapple with austerity and record unemployment, more than half the governments of the euro zone have collapsed or been voted out of office since the debt crisis began.

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A perfect storm is brewing for financial markets on Monday with the European election results likely to be the tipping point after the worst week for the S&P 500 this year.

Elections in France Germany and Greece are being keenly watched. Austerity politics is going to be voted out and that is all that is supporting fragile financial markets.

Expect the Fed and ECB to strike back with money printing operations again. The problem is that the impact on the real economy, as we saw in the appalling US jobs data on Friday, is that this action is less and less effective.

One day that will be the same for financial markets, though there would most likely still be a sugar rush this summer from money printing. However, crucially it might not put stocks onto a new high.

That will make investors more cautious and nervous, and many will lose money. It’s the downward spiral from there on and who knows where that will end up.

Stock markets remain absurdly high for the awful state of the global economy. The UK, for example, is back in recession and yet the stock market is close to its recent highs.

Read the full article:

http://www.arabianmoney.net/us-dollar/2012/05/05/black-monday-for-global-financial-markets/

Edited by The Masked Tulip
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Well spotted for finding the article.

France will probably vote in Hollande, who will want to change the austerity measures being demanded of euro states.

Greece looks a mess, New Democracy are reported to be ahead of any other party, but on 25% of the vote. So a coalition with Pasok will need smaller parties to support it, and many of the smaller parties have an anti-austerity appeal.

And Mandy says we should join the euro.

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Well I don't think stock markets are absurdly high for the state of the economy , when massive scale money printing goes on stocks go up.I'm putting more money into gold stocks next week , they just dropped the interest rates here by .50% so theres no point keeping savings in the bank you will always lose by doing that.

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Well I don't think stock markets are absurdly high for the state of the economy , when massive scale money printing goes on stocks go up.I'm putting more money into gold stocks next week , they just dropped the interest rates here by .50% so theres no point keeping savings in the bank you will always lose by doing that.

Where is "here"? Australia?

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Well I don't think stock markets are absurdly high for the state of the economy , when massive scale money printing goes on stocks go up.

I think that the subordinate phrase in your sentence explains why stock markets are absurdly high for the state of the economy.

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Isn't it Bank Holiday on Monday? Maybe Tuesday noir, or whatever the feck Tuesday is in French. Do the French even have bank holidays? Maybe they have bank working days, not sure which is the exception. Either way, their cars are sh!t.

Oddly enough, the French (and almost everyone else in Europe) had their May the First holiday on um, let me see now, when was it, Oh I remember - On May the First!

tim

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It wont be a black day, just the start of the end of the euro, the left will win, they will spend and borrow, it wont work, the country will bankrupt itself, the euro will fail starvation and war next, austerity is just living within your means, people cant accept that, for every day you overspend you need another tough day to make good, people cant handle tough days, they'd rather go bust, read "when money dies" to look at the future.

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Borrowing by Euro govts has become like a heroine fix. The longer it continues, THE LESS AND less effective it becomes at each turn until one day you just don't wake up atall. Austerity may be no fun, but there is NO painless way to resolve borrowing more than you can pay back. Printing is the new methodone. Does not get you off the habit and prolongs the agony of recession creating inflation in the longer term - another illness.

The idea that you have to get growth going before you can cut borrowing and can only do so by more and more borrowing is NOT working. The drug now has little effect as economists are beginning to realise. The old Keynesian economics DOES NOT WORK if you just keep doing it over and over. If it did, then we need never suffer anything in a recession. The govt could just borrow, pump and hey presto all would be resolved. The fact that growth in the US is so weak that it does not actually pay for the borrowing that created it, is proof of my point.

In fact the borrowing problems have not got any better since Cameron - it is deteriorating because they would not just get on and introduce cuts with immediate effect. Waiting was so pointless as we now see growth has become recession without most of the cuts actually being introduced. Most of them are only starting in the last few months.

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Where are we, 'World Finance' by Jane Austen

She would probably have done a better job than the idiots now in charge.

There is only one way out of this- default and debt write downs- but since this would deprive some very rich and powerful people of their wealth it's an option that is too heretical to even get considered.

A lot of currently 'rich' people are in fact poor men walking- their wealth being entirely an illusion of a dysfunctional system that has allowed more claims on wealth to be created than exists to support those claims.

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