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Shockingly, Arnold Schwarzenegger Compares California To Greece, Ireland, And Spain Joe Weisenthal May. 15, 2010, 11:41 AM Okay, so it's not just us. At his big press conference yesterday, where he announced "absolutely terrible" budget cuts in California, Arnold Schwarzenegger went there, comparing his state to the PIIGS of Europe. His exact quote, via Reuters: "You see what is happening in Greece, you see what is happening in Ireland, you see what is happening in Spain now... We are left with nothing but tough choices." You have to admire his candidness. He's right, after all. Among the "tough choices" include...

The title of this essay may be a play on words, but the facts are nothing of the sort. Indeed, the facts suggest that the financial position of the US government may not be all that much better than the financial position of the governments of Portugal, Italy, Ireland, Greece, or Spain, the so-called PIIGS. In fact, given the agenda the Obama administration has set for America, one so far distinguished by ever larger government spending programs being financed by ever larger amounts of debt, the US government may be well on its way to becoming part of the PIIGS....

Leadership: This week Spain decided it wasn't going to be the next Greece. It launched tough fiscal measures, and pitched "green" programs and public union raises over the side. Seems there are some lessons here. Spain, a latecomer to democracy and the welfare state, has agonized for years about its place on the Continent. Wanting to be a European welfare state, it imitated its neighbors. It spent like they did, but it couldn't match their productive capacity. Instead, it found itself looking like Greece, a country with a stunted private sector and a bloated public sector. Any effort to balance...

Euro Leaders Agree To Huge €500 BILLION Bailout Fund -- Loans And Guarantees Coming To Troubled PIIGS Joe Weisenthal May. 9, 2010, 5:50 PM Update VI: It's official. A €500 billion fund is being established per WSJ. IMF will also contribute funds. Update V: Press conference going on now here. Update IV: Announcement imminent will involve loan and guarantees. Update III: If and when the EU leaders hold their press conference, it will be shown here. Update II: It's past 1:00 AM and they're still negotiating. Update: For some good perspective from inside the halls in Brussels where they're meeting,...

Greece Armageddon, Financial Ebola Sweeps Through Global Bond Markets Interest-Rates / Global Debt Crisis Apr 30, 2010 - 08:37 AM By: Mike Larson What does the end of the bond market world look like? Something like this … The chart above shows the yield on the benchmark 2-year note in Greece. Just a few short months ago, Greek sovereign yields were hovering around 2.1 percent. On Wednesday, they shot up as high as 18.9 percent! Translation? The cost of borrowing for the Greek government — not some subprime mortgage customer or deadbeat credit card holder — shot up almost NINE-FOLD...

LONDON — Next target: Portugal. Speculators have begun to zero in on another small member of Europe’s troubled monetary zone, highlighting the same economic flaw that brought Greece to the verge of insolvency: a chronically low savings rate that forces a reliance on the now-diminishing appetite of foreign investors to finance persistent deficits. Just as investors are turning their attention to the next vulnerable country, Greece moved a step closer on Thursday to activating a $61 billion rescue package, as Prime Minister George A. Papandreou asked the European Union and the International Monetary Fund to meet in Athens next week.

The rumors yesterday about a Portuguese downgrade ended up being true, courtesy of Fitch. Portugal to Bund spread widens 4 bps to 125bps, all European spreads wider also as a result. Euro dumped and breaks 1.35 support, last seen in mid 1.33 range. Full Fitch text. Fitch Ratings: Fitch Ratings has downgraded Portugal's Long-term foreign and local currency Issuer Default Ratings (IDR) to 'AA-' from 'AA'. The agency has simultaneously affirmed Portugal's Short-term foreign currency rating at 'F1+' and Country Ceiling at 'AAA'. The Outlooks on the Long-term IDRs are Negative. "A sizeable fiscal shock against a backdrop of relative...

The United States of America is swimming in an ocean of debt and Washington’s most recent budget, estimated to increase the federal deficit to at least a whopping $1.35 trillion, threatens to raise sea-levels even higher. But as Americans wail and gnash their teeth over the profligate spending by the federal government, they should also recognize that austerity is painful and starts at home. If Americans are paying attention, they will speak through their votes in this election year. Specifically, they must insist that state budgets help minimize the spending problem, not exacerbate it, which requires a ‘taming of the...

The Sick Men Of Europe: The challenges of a monetary union in middle age. Submitted by Michael Cembalest, CIO of JP Morgan Private Banking, who, we are happy to report, in rearranging the PIIGS has demonstrated some very acute "completely random" letter scrambling skills.

Euro-Zone Debt Default Risk Crisis, "UR ALL PIGS FROM HELL!” Economics / Global Debt Crisis Feb 09, 2010 - 04:45 AM By: Gordon T Long Whether you’re in Central Europe, such as Ukraine or Romania, the Med countries such as Portugal, Italy, Greece, Spain, or from Hungary to the Baltic States of Estonia, Latvia or Lithuania, you all have one common problem ---The hell that is the Euro! “Euro members drew down their benefits in advance – ‘ex ante’ -- when they joined EMU and enjoyed "very easy financing" for their current account deficits. They cannot expect ‘ex post’ help...