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Originally posted by mossme89
Anybody know if the FOMC rate decision is still due today? I know the meeting is now 2 days, but this site that I use for economic news still has the rate decision at 2:15 today.
As expected earlier, the next domino in the European contagion cascade, has just tumbled after the local government has collapsed following loss of parliamentary confidence vote.
- SLOVENIAN GOVT LOSES PARLIAMENTARY CONFIDENCE VOTE - BBG
This means that the pan-European EFSF vote, originally scheduled to be completed by the end of this month, will likely be delayed until 2012 which means at least 4 more months of SMP bond purchases and more anger at direct ECB monetization of Peripheral debt.
The civil servants' umbrella union Adedy has decided to hold a protest rally in Klafthmonos Square at noon on Tuesday, as well as a series of labour mobilisations to support the staff of organisations included in the labour reserve measures.
The strike was a reaction to the government's announcement of the labour reserve measure that will send some 50,000 public-sector workers home on half-pay, with only a scant possibility of another job in the public sector and the prospect of unemployment at the end of the year. (AMNA)
State entities and organisations that have been included in the labour reserve measure announced by the government have decided to hold a protest rally at Klafthmonos Square in central Athens, followed by a march to Parliament, on Wednesday.
Ben Bernanke wants us to stop worrying about inflation. He downplays its significance at every opportunity, especially when he wants to inject more cash into the economy. Bernanke knows that his worst enemy is knowledge-knowledge on the part of the America people that all this fantasy money will at some point lead to inflation that will make the 1970′s look tame.
Thus, Q3 (a stealth round of increasing the money in circulation) is in the works. This time, the strategy appears to be using the proceeds from the money the Fed lent to government to buy more bonds (lend the government more money). In the end, the effect is the same as printing money outright.
Throughout history, attempts to pay for things with fake money have ended badly. Our own Continental Congress printed paper money to pay for the war (sound familiar?). It was worthless by the end of the conflict. Ditto for the Greenback during the Civil War. Will our dollar meet the same fate?
Politicians love this way of thinking because it gives them an excuse to spend money created out of thin air. They usually call it a “multiplier effect” to make us think they know what they are doing.
SAN FRANCISCO (MarketWatch) -- The Greek government's talks with the so-called troika of the International Monetary Fund, the European Commission and the European Central Bank were satisfactory but discussions on specific details will continue, Reuters reported late Tuesday, citing the Greek Finance Ministry. Finance Minister Evangelos Venizelos will resume the talks in Washington D.C. this weekend when he attends the annual IMF meeting while the troika officials are expected to return to Athens next week, Reuters said.
Originally posted by Vitchilo
BRICS nations already buying EFSF debt: report
WTF... Europe just doesn't care do they? Screw the people... we'll print EFSF already even without a vote!edit on 19-9-2011 by Vitchilo because: (no reason given)
NEW YORK -- Brazil has set a high bar for providing support to the euro zone under a potential plan that would involve other large developing nations, demanding that the common currency bloc first find concrete solutions for its sovereign debt crisis.
"Europe has to save itself because it has the tools to resolve the sovereign debt problem of Greece and other countries and the problem of bank weakness," Brazilian Finance Minister Guido Mantega said Tuesday.
and the IMF made it clear that cuts have to happen immediately if not sooner, the country has released a statement that in exchange for getting the latest round of Troika funding (which it needs desperately: recall that it has another €2 billion debt paydown this Friday), it will front-load some of those mythical austerity measures that otherwise would have never really occurred.
- To lay off 120,000 civil servants immediately (saving volume: 2.5 billion annually)
- 50,000 more initially set to "on reserve" (ie to provide the service free for 60 percent of salaries - and then released after one year)
- 30 percent reduction of all the pensions of retirees "of privilege" businesses like the telephone company OTE, the electricity company DEI and other state-owned enterprises
- Increase the tax on tobacco and alcohol
- Align the tax of fuel oil and diesel fuel (ie fuel oil price from now on then about 1.60 € / l)
- Reduced expenditure on health
- Immediate closure of 150 state-owned enterprises (whose closure has been discussed already) and now another 60 new businesses
- Increase the penalties for illegal construction
By contrast,Finance Minister Venizelos has first announced on the Cabinet emergency meeting on Sunday, that there would initially be no further austerity measures. He would try to convince the Troika today in a telephone call, that the current measures were sufficient. (Note by Shenon: This is before the call on Monday)
Apparently, the resistance in the PASOK (ie the ruling party) has become too large. According to ProtoThema, there are many in the party and even among government officials who say more austerity measures were no longer viable. The situation in the population has become "too explosive". Some even say now that it is better to conduct new elections.
Number 1 : Las Vegas
Unemployment: up 7.5%
Employment: down 13.4%
Gross Metropolitan Product: down 12.8%
Home prices: down 64.5%
Due to a new Hungarian law, Austrian banks have to write off up to 25 percent of their foreign currency loans. This calls the credit rating agency Standard & Poor's on the plan, which puts Austria on "observation" (or Watch).
Many banks gave loans in euros or Swiss francs to private individuals in the former Eastern Bloc countries [at favorable interest rates, MGR]. Two-thirds of the debtors can´t pay anymore. Its 5 billion euros that Austrian banks in Hungary lent alone to the citizens. From 1.3 million borrowers,800.000 can´t pay as of now. And every day there are more. The Austrian banks gave Hungary loans in Franc, as the price of the euro against the Swiss franc was high.
Now, the Parliament in Budapest passed the controversial law despite fierce protests from the Austrian government. It allows for early redemption of foreign currency mortgage loans, at a fixed exchange rate. This allows the holder of foreign currency loans, to pay off their mortgage in one lump sum at the rate of 180 forints per U.S. dollar (which is almost a quarter below the actual exchange rate). Mainly those Austrian banks have to write off the loss ,which mediated the most foreign currency loans in Hungary.
There are approximately one million of these loans, over 90 percent in Swiss francs. Since the Franc was always stronger, however, the foreign currency loan rates have become so expensive that more and more Hungarians can not pay them off. Because you have to pay 235 forint today instead of 150 forint for one Swiss franc.
The Austrian government knows the risks of this enormous write-offs due to the new Hungarian law and protested violently against the state: "Expropriation of their banks, which must now write off billions and could even get into difficulties". She is considering legal action and hopes for support from Brussels.
The result is that the rating agency Standard & Poor's is now targeting Austria because their banks "may lose significant amounts" (almost 25 percent).
Originally posted by Vitchilo
reply to post by Shenon
Due to a new Hungarian law, Austrian banks have to write off up to 25 percent of their foreign currency loans.
How is this even possible? Without translating the article can you explain a little more?