Unfortunately everyone who should have seen it coming. But they're too busy trying to add that last piece to the debt Jenga tower.
Posted on 12/14/2011 2:04:39 PM PST by Signalman
NEW YORK (CNNMoney) -- What fiscal pact? There is little sign that last week's European summit even happened, judging from the high cost of sovereign debt and the weakness in European markets.
Last Friday, European leaders -- with the exception of Britain's David Cameron -- pledged to form a tighter, more deeply integrated fiscal bond among member states. Of course, most of the countries still need to get parliamentary approvals before moving forward.
One of the most crucial aspects of the fiscal pact, which was masterminded by Germany's Angela Merkel and France's Nicolas Sarkzoy, was to force eurozone members to maintain responsible budgets. Countries would face sanctions if they allow their deficits to stray above 3%.
"[The summit] is clearly a stepping stone to fiscal union but there are still a lot of hoops to jump through," said Nick Stamenkovic, fixed income strategist at RIA Capital Markets in Edinburgh, Scotland. "People are getting more and more nervous for the outlook of Europe and the lack of political agreement."
Bond buyers showed little indication that they felt any better about European debt in Italy on Wednesday. Italy's €3 billion auction of five-year notes met with relatively strong demand, but resulted in a high yield of 6.47%.
(Excerpt) Read more at money.cnn.com ...
Gee, who didn't see THIS coming??
It is like Groundhog Day. Routinely these stooges have meetings. Dopes believe that real work is being accomplished to solve this and get excited. The next day everyone figures out that the meeting was a total waste of time. There is no solution for that mess because there isn't enough money to bail these losers out. They are finish and when people figure it out, they can start preparing for the rebuild after the inevitable crash.
Unfortunately everyone who should have seen it coming. But they're too busy trying to add that last piece to the debt Jenga tower.
If GW was President the “fire-breathing” media and Democrats would be Demanding he do something to bail out Europe. Now, however they are willing to “Lead from behind”!!!!
Buying 5 year bonds paying 6.5 percent seems pretty risky considering where the EU could be going. Chance taking always increases when you’re spending other people’s money. I doubt 6.5 percent is an accurate assessment.
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