Friday, June 29, 2012
Friday beaver meltdown and bailout
And you thought this was about the fires in Colorado.
I have to laugh every time I hear the latest incarnation of the european bail out plan. The newest twist on this rearrangement of the deck chairs on the Titanic is to appoint a single supervisor to oversee the euro banks' plan. Never any concrete details of the plan just more blathering about how they'll only break legs and not cut them off. Austerity is such a dirty word now. The biggest problem according to economists with knowledge far greater than me is that there is debt with both the banks involved (at present that would be Spain and Italy) and the governments who were suckered into the debt swaps in the first place. Ze Grande Plan now I gather is to only loan to the banks and leave the governments out of it or so it seems. Paul Krugman noted economist has pointed out in past posts that a bail out to a nation presents the problem of just shifting the debt around from the government to the banks and back again. I'd add that throwing austerity (there's that word again) on the citizens will do little to provide the necessary funds to pay back those loans.
At any rate the markets seem to think this is a swell idea because after all you can't keep the crap game going if the euros aren't flowing, Somebody has to be screwing somebody else over or it's just no fun at all. Got to keep that real time graph jumping you know.
And the last punch line of this joke is that just as before the can kickers are out in force and are shooting to the end of the year for any resolution. The big question remains will they be able to keep all amused in the mean time before the music stops and everything hits the deep freeze again? The natives are restless and not too thrilled with the last punch to the midsection. That's economically speaking.
Mwahahahaha How ya goina get out of this one Sparky?
Bank fails later but then I've never really checked foreign bank fails. Must start doing that. The list must be gargantuan.
Update: No bank fails this week and to my surprise there aren't that many foreign banks that failed because the ones that did were very large. So I can only assume that most foreign countries operate with only three or four large banks unlike the U.S that has thousands.