Bailout Fail

Italian newcomer Grillo predicts collapse in six months

"Italy's comedian turned protest politician, Beppe Grillo, has told German news magazine 'Focus' that he believes the country's political system could crumble within the year. 'I'd give the old parties another six months - then it will be all over here,' Grillo said in excerpts of the interview released on Saturday ahead of Focus' publication. 'Then they won't be able to cover pension payments or public sector salaries anymore.' Grillo, a populist who pledged a referendum on Italy withdrawing from the euro during the country's recent election campaign, said that Italy's national debt was becoming unsustainable and that its terms had to be renegotiated." Continue reading →

Continue ReadingItalian newcomer Grillo predicts collapse in six months

Geneva car show opens amid industry gloom

"Switzerland, the host of what is one of the auto industry's biggest events, is a rare bright spot on the crisis-hit continent. The Swiss, who do not belong to the EU, saw new car registrations jump 2.4 percent last year from an already record year in 2011, with 431,000 new registrations. For the neighbouring EU nations, however, the end of the tunnel remains out of sight and most experts refuse to guess when, if ever, the market will come roaring back and hit its pre-crisis 2007 level of 16 million cars sold." Continue reading →

Continue ReadingGeneva car show opens amid industry gloom

Austerity’s End Could Bring Additional German Turmoil

"Is Brussels backing away from austerity? If the top Eurocrats that have pushed so hard for it are now finding it impossible to implement, then we begin to ask underlying questions once more: Who pays for European insolvency? The obvious answer is the Germans. And this confirms what we have been arguing for the past several years. The Germans are not so much the 'leaders' of Europe as they are the victims of it. Ms. Merkel may not want a Euro-crisis before German elections but she may get another one after them." Continue reading →

Continue ReadingAusterity’s End Could Bring Additional German Turmoil

Debt crisis: France puts brakes on austerity

"Finance Minister Pierre Moscovici said on Friday that France would ask its EU partners and the European Commission for an extra year to cut its public deficit below a targeted 3 percent of GDP, and would outline new savings measures soon. Mr Hollande said his government had brought down the deficit to 4.5 percent in 2012. The European Commission expects a French 2013 deficit of 3.7 percent of GDP. Spending cuts in 2014 would be made in the state budget, local budgets and the social security budget, Hollande said. Mr Hollande said France would continue to try and boost growth through public investment." Continue reading →

Continue ReadingDebt crisis: France puts brakes on austerity

Nervous Brussels urges Italy to stick to austerity

"The European Commission has urged any future government in Italy to keep on implementing deficit-cutting measures, despite the fact that over half the electorate voted for anti-austerity parties. 'Last Friday the Italians were speaking quite clearly about debt-reduction commitments as well as a series of other commitments. These Italian commitments remain in force and the commission expects compliance,' commission spokesperson Olivier Bailly said. His comments come after elections in Italy put former comedian Beppe Grillo, who ran on an anti-austerity ticket and has called for a referendum on euro membership, in kingmaker position." Continue reading →

Continue ReadingNervous Brussels urges Italy to stick to austerity

Italy’s anti-austerity ‘rebellion’ promises to spread

"Any doubts that Italians were fed up with tax hikes and economic reform vanished in an election that awarded more than half of the votes to anti-austerity parties. As Italian voters supported the anti-austerity parties, they also punished the centrist, pro-austerity alliance led by Mario Monti, the technocrat prime minister who replaced Mr. Berlusconi at the height of the Italian financial crisis in late 2011. Mr. Monti rolled out a series of tax hikes, including a hated property tax that Mr. Berlusconi vowed to kill, and attempted economic reforms that met with partial success. For that, his alliance got 10 per cent or less of the votes." Continue reading →

Continue ReadingItaly’s anti-austerity ‘rebellion’ promises to spread

ECB bailout plan in jeopardy as Italy’s voters reject conditions

"'The result touches us all,' said Spain’s foreign minister, Jose Manuel Garcia-Margallo. 'It is a jump into the void that bodes well for nobody, neither for Italy, nor for the rest of Europe.' Almost 57pc of the Italian vote went to parties that have vowed to tear up the EU austerity script. Together they control a majority of senate seats. The Five Star movement of comedian Beppe Grillo, which won 25pc of the vote, has called for a euro referendum and has a return to the lira as one of its manifesto pledges, while ex-premier Silvio Berlusconi has threatened to pull Italy out of the currency bloc unless the EU switches to a reflation strategy." Continue reading →

Continue ReadingECB bailout plan in jeopardy as Italy’s voters reject conditions

Chief Greek Statistician Threatened with Jail For Revealing True Size of Deficit

"At a time when the rest of the world was furious that Greece had artificially improved the country's budget statistics, Greek prosecutors are accusing Georgiou of doing the opposite. Prosecutors acted after a 15-month investigation into allegations made by a former ELSTAT board member. If found guilty, Georgiou faces five to 10 years in prison. Some argue that the technocrat Georgiou was serving his former superiors at the IMF and the European statistics agency Eurostat, which is led by a German. This theory holds that Greece was to be brought to its knees by imposing harsh austerity measures based on bloated deficit figures." Continue reading →

Continue ReadingChief Greek Statistician Threatened with Jail For Revealing True Size of Deficit

TARP: The bailout success story that wasn’t

"The idea that TARP is somehow a wash because a few banks repaid the bailouts with interest is misleading. The reality is that bailed-out firms essentially wrote off their losses on taxes. As of Dec. 30, TARP was still owed $67.3 billion, including $27 billion in realized losses — which is to say, that money is gone and is never coming back. Now, TARP is losing money as it tries to exit the programs. A new report by SNL Financial shows the Treasury Department is taking a beating in auctions of the Capital Purchase Program, one of the pipelines through which bailout money flowed." Continue reading →

Continue ReadingTARP: The bailout success story that wasn’t

Greeks strip country for scrap cash

"Train lines, bridges, cables and even cemeteries have all been targeted for scrap to feed a market driven by China and India. Police now arrest an average of four metal thieves every day, compared to a few cases every month before the crisis started in late 2009. The profile of the metal thief is also changing, authorities say, from gypsies and immigrants living on the margins of society to mainstream Greeks who have fallen on hard times. Athens' nine-year-old light rail system has been a prime magnet for metal robbers, with at least five major disruptions reported in the past six months due to cable theft." Continue reading →

Continue ReadingGreeks strip country for scrap cash