Lxxx Posted January 12, 2012 Share Posted January 12, 2012 Or looked at through rather less dark glasses, austerity is intended to return Euro zone member states to the borrowing parameters that they should have followed all along, I.e. no more than 3% of total economic output annually.In so doing, the hope is that market confidence in the Euro will be restored, and that closer fiscal union will be a less bitter pill for Germany to swallow. But I wonder if the 'elephant in the room' remains the repayment of the capital? Austerity will allow countries to finance their more austere public services plus the interest charges on the loans. But as the loans are all relatively short term they will have to refiance them as there is no way whatosever that they will be able to pay them off. Perhaps the thinking is that if you are able to meet the target then interest rates on borrowing will reduce which will ease the financial pressure. But the countries will remain incredibly indebted and still be spending a very significant part of their budgets on debt servicing rather than on economic development. Which means that borrowing costs will probably remain fairly high, which means austerity and low growth will be ongoing. Spot on. All this does is tinker around the edges but doesn't solve the problem, which is unpayable debt mountains. Link to comment Share on other sites More sharing options...
wheels Posted January 13, 2012 Share Posted January 13, 2012 I heard Barclays IOM losing 1 in 7 staff shortly. Any confirmation? I was told the same yesterday Link to comment Share on other sites More sharing options...
GD4ELI Posted January 13, 2012 Share Posted January 13, 2012 It is now about rebuilding confidence, I think. Yesterday's bond auctions by Spain and Italy were a success, so apart from the Greeks things are improving. Link to comment Share on other sites More sharing options...
EORH Posted January 13, 2012 Share Posted January 13, 2012 RBS are supposed to be losing around 4000 staff,according to the news,mostly back room,but will it affect here,any comment from them to our news media?. Link to comment Share on other sites More sharing options...
GD4ELI Posted January 13, 2012 Share Posted January 13, 2012 RBS are supposed to be losing around 4000 staff,according to the news,mostly back room,but will it affect here,any comment from them to our news media?. The cuts are coming in the Investment Banking arm (stocks & shares, mergers & aquisitions, ...), the Isle of Man operation is seperate from this, see http://www.rbsintern...om/default.ashx . Having said that, there will be pressure on all arms to make greater efficiencies, so it is reasonable to expect some job losses anyway. Link to comment Share on other sites More sharing options...
Cambon Posted January 13, 2012 Share Posted January 13, 2012 It is now about rebuilding confidence, I think. Yesterday's bond auctions by Spain and Italy were a success, so apart from the Greeks things are improving. I think Greece has no intention of repaying anything. They basically lied to get in to the EU, and have been living off loans from other countries ever since. Now that the shit has hit, they will probably be out of the eurozone by the end of the year. The other country I can see possibly leaving is Germany. Link to comment Share on other sites More sharing options...
Albert Tatlock Posted January 13, 2012 Share Posted January 13, 2012 The other country I can see possibly leaving is Germany. Have you been in the market since 9am? If Germany leaves, the whole house of cards collapses. They are the only ones with any money. Link to comment Share on other sites More sharing options...
Cambon Posted January 13, 2012 Share Posted January 13, 2012 The other country I can see possibly leaving is Germany. Have you been in the market since 9am? If Germany leaves, the whole house of cards collapses. They are the only ones with any money. I know, and that is exactly why they may leave. Link to comment Share on other sites More sharing options...
Lxxx Posted January 13, 2012 Share Posted January 13, 2012 Trust in the health of banks is it an all time low with investors now paying Germany to borrow money off them. Forget about earning interest, large institutional investors wanting a safe haven for their capital are now losing money (-0.122%) for the privilege of lending to Germany, one of the few safe havens in the world, and keeping it out of the risky banks. When, not if, Germany's AAA rating is downgraded, then watch the euro crisis take a huge turn for the worst. Link to comment Share on other sites More sharing options...
Lxxx Posted January 13, 2012 Share Posted January 13, 2012 To illustrate the severity of the situation in 2012 and the sheer absurdity of the numbers involved; The major industrialized nations of the world must roll over trillions upon trillions of dollars in debt during 2012. At a time when credit is becoming much tighter, this is going to be a huge challenge. The following list compiled by Bloomberg shows the amount of debt that some large nations must roll over in 2012.... Japan: 3,000 billion U.S.: 2,783 billion Italy: 428 billion France: 367 billion Germany: 285 billion Canada: 221 billion Brazil: 169 billion U.K.: 165 billion China: 121 billion India: 57 billion Russia: 13 billion Those numbers do not include any new borrowing, they are just old debts that must be refinanced. If they cannot find the means to refinance then we'll see the global economy take another nosedive as the domino effect takes place. Link to comment Share on other sites More sharing options...
gazza Posted January 13, 2012 Share Posted January 13, 2012 Trust in the health of banks is it an all time low with investors now paying Germany to borrow money off them. Forget about earning interest, large institutional investors wanting a safe haven for their capital are now losing money (-0.122%) for the privilege of lending to Germany, one of the few safe havens in the world, and keeping it out of the risky banks. When, not if, Germany's AAA rating is downgraded, then watch the euro crisis take a huge turn for the worst. France Italy, Spain and the Irish Republic are ment to have there credit rateing downgraded tonight. And silver gos up 30% in that time over what might happin. thats some gain and greek bonds up to 400% Link to comment Share on other sites More sharing options...
Freya Q Posted January 13, 2012 Share Posted January 13, 2012 Trust in the health of banks is it an all time low with investors now paying Germany to borrow money off them. Forget about earning interest, large institutional investors wanting a safe haven for their capital are now losing money (-0.122%) for the privilege of lending to Germany, one of the few safe havens in the world, and keeping it out of the risky banks. When, not if, Germany's AAA rating is downgraded, then watch the euro crisis take a huge turn for the worst. France Italy, Spain and the Irish Republic are ment to have there credit rateing downgraded tonight. And silver gos up 30% in that time over what might happin. thats some gain and greek bonds up to 400% You were right. The French rating has been downgraded. http://online.wsj.com/article/BT-CO-20120113-711174.html Link to comment Share on other sites More sharing options...
Matt Bawden Posted January 13, 2012 Share Posted January 13, 2012 The other country I can see possibly leaving is Germany. Have you been in the market since 9am? If Germany leaves, the whole house of cards collapses. They are the only ones with any money. In actual reality they don't have any money Link to comment Share on other sites More sharing options...
gazza Posted January 14, 2012 Share Posted January 14, 2012 Trust in the health of banks is it an all time low with investors now paying Germany to borrow money off them. Forget about earning interest, large institutional investors wanting a safe haven for their capital are now losing money (-0.122%) for the privilege of lending to Germany, one of the few safe havens in the world, and keeping it out of the risky banks. When, not if, Germany's AAA rating is downgraded, then watch the euro crisis take a huge turn for the worst. France Italy, Spain and the Irish Republic are ment to have there credit rateing downgraded tonight. And silver gos up 30% in that time over what might happin. thats some gain and greek bonds up to 400% You were right. The French rating has been downgraded. http://online.wsj.co...113-711174.html Ratings agency Standard & Poor's downgraded the government debt of France, Austria, Italy and Spain on Friday. along with Portugal and Cyprus Malta, Slovakia and Slovenia. so a few more than first thought Link to comment Share on other sites More sharing options...
manshimajin Posted January 14, 2012 Share Posted January 14, 2012 France Italy, Spain and the Irish Republic are ment to have there credit rateing downgraded tonight. You were right. The French rating has been downgraded. http://online.wsj.co...113-711174.html Part right - Ireland's rating remains unchanged (not that it is briliant!) We have lowered the long-term ratings on Cyprus, Italy, Portugal, and Spain by two notches; lowered the long-term ratings on Austria, France,Malta, Slovakia, and Slovenia, by one notch; and affirmed the long-term ratings on Belgium, Estonia, Finland, Germany, Ireland, Luxembourg, and the Netherlands. All ratings have been removed from CreditWatch, where they were placed with negative implications on Dec. 5, 2011 (except for Cyprus, which was first placed on CreditWatch on Aug. 12, 2011). At least they are off Credit Watch now they have been re-rated. UK next for a downgrade? Link to comment Share on other sites More sharing options...
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