Posted on 06/18/2012 8:32:26 PM PDT by bruinbirdman
Europe's leaders have vowed to mobilise all possible means to counter the region's escalating crisis after Spain's borrowing costs threatened to spiral out of control.
Yields on 10-year Spanish bonds surged to a record high of almost 7.3pc as investors ignored the victory of pro-bailout parties in Greece's elections.
The closely-watched two-year yield rocketed by 65 basis points in a matter of hours, signalling a near-total collapse of confidence in Spain's 100bn (£80.3bn) rescue from the EU last week to shore up its banking system.
Cristobal Montoro, the economy minister, warned that Spain is now in a "critical" condition and pleaded with the European Central Bank to act with "full force" to defeat markets hostile to the euro project.
Bank of America said Spain may need a second rescue to tide it through the next three years, pushing the total loan package towards 450bn a sum that would test the EU bail-out machinery and cause serious knock-on effects for Italy. A draft communique from the summit of G20 leaders in Mexico said Europe will take "all necessary measures" to hold the eurozone together and break the "feedback loop" between sovereign states and banks.
A separate text for next week's EU summit vowed to "mobilise all levers and instruments", though details were thin. Italy said it would push for "semi-automatic mechanism" probably involving the ECB to cap bond yields of states in trouble.
Bill Gross, head of the world's biggest bond fund Pimco, told Bloomberg TV that Spanish bonds were no longer a "safe environment" and warned that Germany itself had become a "credit risk" as the crisis metastasises. Spain's economy is twice the size of Greece, Portugal, and Ireland combined.
Spain's financial daily Cinco Dias said the bond rout had been a "massacre
(Excerpt) Read more at telegraph.co.uk ...
Well, They aint making no more of it.
Grease has a large military. Germany, France, Spain loan the Greasers teurdos so they can buy military equipment from same.
Grease also buys roads, airports, ports, etc. from EUSSR.
Grease loans are a grand euro employment plan.
yitbos
True, but there’s a lot of it unless you’re in one of those largely federal owned states. Price goes boom and bust just like most everything else. I inherited the land I mentioned. It was purchased for less than $100,00 an acre originally, by my grandfather.
That comma should be a decimal. $100.00.
Still, it seems like commodity’s is where you want to be.
That’s certainly been the case thus far in this rolling financial crisis verging upon depression. Money’s flowing into the few remaining areas with consistent demand.
Gnight gang.
Germany was the place along with UK. Now Deutschland is suffering the contagion.
Switzerland is too small and already has capital controls (pegged to the teurdo).
Japan was a haven that had to intervene to protect the yen (to no avail).
Australia? Canada? Too small.
China? They don't call it Communist China for nothing. The yawn is not even convertible.
How about the ruble, er rubble, nuff said.
U.S.A.? Always the haven with unlimited supply, political safety and ....................... liquidity!!
yitbos
Amazing how blindly journalism majors adhere to their own lies, despite evidence to the contrary staring them in the face.
Hint: Investors didn't ignore the results at all.
No Fall Guy available (NLA). So giveway with no value. Watch the price of oil.
Gold and land.
Oil.
I’ve thought for a while that these bailout band aids will continue through the 4 Nov elections. Basically, anything no matter how expensive or ludicrious will be initiated in order to keep the Markets “stable” enough to ensure Obama’s re-election. After that, however, watch out: the bill will come due with a vengence for all these Market distortions.
Improving and stabilized employment with prices around 2.5 to 3 times annual income for the location, will be when and where it will stop falling.
Increasing rents could put a floor on it too assuming steady demand. It won’t fall through the floor barring a complete collapse. Then, all bets are off.
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