Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand including news European officials have approved a fresh 8 billion euro loan to Greece to stop it from running out of cash next month.
The much-debated issue of whether Greece would get the next tranche of its bailout was settled overnight, but the troika of officials said Greece continued to need to do more to restructure its economy. Greece's economy is still contracting, which is increasing the burden of its debt relative to the size of its economy. See more here at Reuters.
Meanwhile, outgoing European Central Bank President Jean Claude Trichet has warned that the financial crisis is turning systemic and decisive action is required.
“The crisis has reached a systemic dimension,” Trichet told European lawmakers in Brussels.
“Sovereign stress has moved from smaller economies to some of the larger countries. The crisis is systemic and must be tackled decisively," Trichet was quoted as saying in this Bloomberg report.
The next three weeks are shaping up as crucial in the fight to save the euro and prevent stress in Europe's banking system turning into a system-wide meltdown that derails the global economic recovery.
German Chancellor Angela Merkel and French President Nikolas Sarkozy have set themselves a deadline of a G20 summit in Cannes on November 3/4 to propose a recapitalisation of European banks and the creation of a 'Big Bazooka' fund to buy bonds of stressed Southern European governments.
But there are big hurdles to jump before any euro rescue can be assured. The European Central Bank has to decide whether it provides the lending to bolster the 'Big Bazooka' fund, a decision has to be made on how big any Greek bond writedowns will be, and also European governments will have to decide how much capital is pumped into European banks, which banks need it, and who will pay for it.
Meanwhile, a summit of European leaders planned for this weekend has been delayed for five days until October 23 as leaders in the 17 nation eurozone try to hammer out these details.
European stocks closed virtually flat, with much attention on an upcoming vote in the Slovakian parliament, which has the potential to block a previous rescue plan. See more here at Bloomberg.
Meanwhile in China, a state fund went on a buying spree yesterday to bolster Chinese bank prices in Hong Kong. Bank stocks have slumped in recent weeks on growing fears that a crackdown on official lending over the last year has forced many developers into the arms of loan sharks and many of those loans were going bad. See more here on the state fund buying here at Bloomberg.
There have been reports in recent weeks that dozens developers and business owners were disappearing and committing suicide as their companies collapsed under the weight of these loans, often with interest rates of over 30%.
But UBS analysts' said overnight the worst may be over as the city of Wenzhou, where the worst of the loan sharking was happening, had stepped in to provide credit, Bloomberg reported.
The Hang Seng index closed up 2.4% on the state fund buying of Chinese banks.
The New Zealand dollar was firm over 78 USc this morning. The Dow was down around 35 points in the last hour of trade.
No chart with that title exists.
21 Comments
Have the Slovak pollies the guts to say "NO".
The circus in Europe will soon see the charge of the Elephants through the big tent and they won't be taking any prisoners. The bank in Belgium just 'nationalised' to protect deposits is only the sound of the Elephant charge...wait until the big bastards start to go under.
Meanwhile down here the banking and govt fools still believe in magic and expect everything will be aok just as soon as all of us believe in the same utter BS about more debt being the way to solve a problem of too much debt.
The warning could not be any clearer...be careful where you have your savings, especially when they are in a bank...you have no protection on any of the money...no govt backstop guarantee...no security at all. At best your savings will be frozen and you will be allowed what a pointy head decides to let you take out each month or year......at worst you will lose the whole bloody lot. The banks are no safer than those shitebag finance companies.
CRASH 2: Is Mario Draghi the reason behind postponement of the Merkel-Sarkozy ‘details’?
http://hat4uk.wordpress.com/2011/10/11/crash-2-europe-behind-closed-doo…
Bail-outs are coming thick and fast in China. In less than a week the authorities have had to step in to prop up the banks, rescue the insolvent railway system and save the near bankrupt city of Wenzhou from a spectacular debt crash.
http://www.telegraph.co.uk/finance/china-business/8821094/Chinas-debt-s…
There is a way out of the upcoming worldwide depression.
The Obama administration has accused agents of the Iranian government of being involved in a plan to assassinate the Saudi ambassador to the United States.
Secretary of State Hillary Rodham Clinton said the thwarted plot would further isolate Tehran.
"We will not let other countries use our soil as their battleground," Bharara said at a press conference in Washington with Holder and FBI Director Robert Mueller.
http://www.nzherald.co.nz/world/news/article.cfm?c_id=2&objectid=107584…
This master thesis investigates the role of credit creation and its contribution to
financial crises.
http://www.er.ethz.ch/publicationsMAS_Thesis_Marina_Stoop_2010_final.pdf
Anyone know where the containers loaded with bales of wool are most likely to drift ashore....tis very hard to know who owned which bale isn't it...what's a bale worth these days...? How many in a container?
be careful as there is risk of fire or even explosion
More important when does the Astrolabe Sauvignon Blanc wash up?
A fruity wine, the perfect accompaniment for the Captain's birthday or for drowning your sorrows. Don't let the fine film on the surface deture you from appreciating its sharp pointed flavours which lye just beneath the surface. It shows bright early flavours of promises from politicians and ministry officials of full clean up however this voyage is short lived. The palate unfortunately leaves the locals with a rather long lasting acidic tang. The milky nose has a hint of political intrigue and show ponying which should last a couple of weeks. Contained in recyclable bottle feel free to dump them on the beach and let the locals sort it out once the TV crews have gone.
RRP – Free
Wine Political Speculator - 80/100
Rubbish.....the only risks are to the reputations of the fools who approved the entry of this heap of .... into NZ waters. It and it's captain ought to have been scrapped years ago.
This is the .... you get when you take the lowest cost freight route to market. My money is on the insurance company giving the Greek owners the big finger...which leaves us carrying the can and the cost of the cleanup.
Wolly
Can you use some other cleaner type of invective in future instead of the sh word?
cheers
Bernard
Wolly is an expert on everything though Bernard :-)
http://www.youtube.com/watch?v=GgrX7uOZqHI&feature=related
Clarke and Dawe had the answer, it needs to be towed beyond the environment.
Slovakia votes down Euro bailout ... gets interesting now.
This is what Sulik (Slovak party leader) said a couple of days ago:
Sulik: The opposite is actually the case. The greatest threat to the euro is the bailout fund itself.
SPIEGEL ONLINE: How so?
Sulik: It's an attempt to use fresh debt to solve the debt crisis. That will never work. But, for me, the main issue is protecting the money of Slovak taxpayers. We're supposed to contribute the largest share of the bailout fund measured in terms of economic strength. That's unacceptable.
SPIEGEL ONLINE: That sounds almost nationalist. But, at the same time, you've had what might be considered an ideal European career. When you were 12, you came to Germany and attended school and university here. After the Cold War ended, you returned home to help build up your homeland. Do you care nothing about European solidarity?
Sulik: If we now choose to follow our own path, the solidarity of the others will also crumble. And that would be for the best. Once that happens, we would finally stop with all this debt nonsense. Continuously taking on more debts hurts the euro. Every country has to help itself. That's very easy; one just has to make it happen.
Is he the only politician in Europe that's got a bloody clue?
No KD...a few of them know this is their greatest chance in life to cream it....consider what the bribes will be here.....we are talking huge dollops of loot....free mansions....free cars...boats...holiday homes...credit(with no pay by date)....
What would you do KD?
Another vote will be held soon in Slovakia but doesn't name a time.
They ought to get one on those giant thermometers to show funds raised.
"We have to accept that the EFSF goes through 17 parliaments. It hasn't done so yet," Trichet said. "I would prefer something to be much more flexible. But we have to fully respect our democracies."
So effectively those prepared to hold out the longest get the lions share of democratic bribe money.......it ain't rocket science Jean Claude..!
Haha...what a laugh...Putin visits Beijing and some wag selected an honour guard consisting of blokes from the Chinese basketball team...made Putin look like a wee dork...
Ummm...how dumb are the NZ 'authorities'...!...like why has it not dawned on them that there might be a reason why the container ship was parked on top of the reef...a reason besides gross negligence...doh.
Anyone bothered to ask who is carrying the insurance...what they know about the owners...who the owners are....what their insurance history is....????
Big deal for el capitain who might get told he has been very naughty and have to live it up in a NZ jail for a few months and fork out a few grand.....but when he gets back home....!!!!!
Best show in town. Watching Dumb and Dumber buy into equities, given the utter certainty that the Euro is sailing down a sewer hand in hand with Greenback and old Pound, that depression cannot be avoided. Go read Ambrose and feast on the fun.
Then over a cuppa you need to ask yourself what it all means for you!....that's when you stop laughing. Rest assured the market bounce is a fraud. Get the hell outa there while you still have your shirt on.
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