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Now, as the quixotic war against Eurozone deficit addiction and excessive debt is falling apart, and as affected economies are careening out of control, German industry fears for its export markets. And suddenly, Germany finds itself at war: on one side is its soul, whose spokesperson is the Bundesbank; and on the other is its dependency on exports.
At some point, after all bailout efforts have failed, one side will prevail. Germany will either come around and support “saving” the Eurozone, and thus its industrialists and banks, through monetization of debt—and lose part of its soul in the process. Or it will exit the Eurozone in disgust to revert to the Deutsche Mark or to start a smaller monetary union it can control—and lose crucial export markets in the process.
comments from Germany's FinMin Schaeuble in a German newspaper that Germany faces additional costs should Greece go bankrupt or bondholders face a larger write-down on GGBs. Bloomberg notes the comments suggest additional costs potentially amounting to billions stemming from losses at WestLB and Hypo RE.
Where are we now?
February 2010 | EU and Greece reach austerity plan
April 2011 | Portgual asks for a bailout
October 2011 | Greece 'haircut' ruled voluntary - MF Global Goes Down - CDS now meaningless
December 2011 | Greek default no longer the world's focus as Italy collapses
January 2012 | Greece defaults
March 2012 | Germany to leave the EU
June 2012 | French banks fail - French yields soar as bond auctions fail
German Trade Balance (EUR) (Sep) M/M 17.4bln vs. Exp. 12.5bln (Prev. 11.8bln)
German Exports SA (Sep) M/M 0.9% vs. Exp. -0.8% (Prev. 3.5%, Rev. to 3.2%)
German Imports SA (Sep) M/M -0.8% vs. Exp. 0.4% (Prev. 0.0%, Rev. to -0.1%)
Dutch Industrial Production SA (Sep) M/M -0.2% vs. Exp. -0.3% (Prev. -0.6%)
Dutch Industrial Sales NSA (Sep) Y/Y 12.7% vs. Prev. 16.1%
Market talk that the ECB is buying Spanish government debt - unconfirmed
The enthusiasts say it is the first stage of plans which would see massive, permanently inhabited 'Dark Sky Stations' floating high in the atmosphere on the edge of space.
The Tandem airship was lifted to 80,000ft (24km) by twin helium balloons.
Two six feet-long propellers specially designed to operate in a near vacuum then lifted the craft to 95,085ft, just short of 29km (18.1m).
Video taken by onboard cameras shows the unmanned craft manoeuvring by remote control high above the Nevada desert in the US.
The airship then released the balloons and returned to Earth dangling from five parachutes.
President of volunteer space collective JP Aerospace, John Powell, said: 'The big aerospace firms have been trying to do this for decades, spending hundreds of millions of dollars.
We've spent about $30,000 ($A29,000) and the past five years developing Tandem.'
Judge approves $410M Bank of America settlement, AP reports
According to Bank of Italy, ECB funding to Italian banks at EUR 111.288bln end October from EUR 104.683bln end-Sep
- Austrian bond auction for EUR 0.500bln, 4.00% Sep’16, bid/cover 2.272 vs. Prev. 2.54 (yield 1.960% vs. Prev. 4.480%)
- Austrian bond auction for EUR 0.6bln, 3.50% Sep’21, bid/cover 2.427 vs. Prev. 2.74 (yield 2.992% vs. Prev. 2.811%)
Greek 6-month T-Bill auction for EUR 1.3bln (incl. EUR 300mln non-comp. bids), bid/cover 2.91 vs. Prev. 2.73 (yield 4.89% vs. Prev. 4.86%)
Five deputies from Italy's ruling PDL say they will abstain on vital Tuesday vote in Parliament; this could put Berlusconi's majority in danger
Airship reaches world record 95,000ft
Originally posted by Shenon
Not posting much anymore since i´m pretty tired of this BS. But here is something will will make the Situation probably much worse,especially for the US
Property Prices Collapse in China. Is This a Crash?
Looks like the Housing (City) Market in China is on its way to collapse. Which means China may be forced to sell its US Debt to save itself pretty soon.
And for that we go to Politico: "Congressional Democrats and Republicans are trillions of dollars apart on a deficit reduction deal as the supercommittee nears its Nov. 23 deadline."
"This plan would provide the very wealthiest Americans with one of the largest tax rate cuts ever. It's a shell game. A thinly veiled attempt to appear to put revenue on the table while simultaneously removing far more with massive tax cuts for wealthy Americans
And, just as in the case of Credit Suisse, Goldman is desperately pushing for Italy to avoid precisely the outcome that Berlusconi has said is coming, namely early elections: "These could be held in mid-January at the earliest, although they would most likely be postponed until the Spring amid market turmoil. This would represent the worst scenario for markets, in our view. Since President Napolitano is aware of this, he will probably try to resist dissolving Parliament at this juncture. Also, most centrist parties would want to change the electoral law before a new vote takes place. All these scenarios will take some time to play out, a couple of weeks at least. In the meantime, the higher priced Italian government bonds will continue to be sold, as gradually higher margin requirements are applied.
the US 'cannot' be in recession because the yield curve has not inverted. Well, unfortunately for the savior-of-the-universe Chinese economy, their yield curve (the 2s-10s differential) has just inverted for the first time - suggesting, as per Mike Darda of MKM, the Chinese economy is “set to slow rather sharply” and that has “negative implications” for commodities tied to industrial growth.
Warren Buffett's $24 Billion Bet on the U.S. Market
Investing legend Warren Buffett must be feeling good about the U.S. market and economic outlook – he's bet $24 billion on them.
Buffett's Berkshire Hathaway Inc. (NYSE: BRK.A, BRK.B) invested $23.9 billion in this year's third quarter, the most in at least 15 years.
The company bought almost $7 billion in stock last quarter, a 90% jump from the $3.62 billion in the second quarter and a staggering 739% increase from the $834 million purchased in the first.
The $23.9 billion also included the $9 billion acquisition of specialty chemical company Lubrizol Corp., finalized in September, and $5 billion in preferred shares and warrants in Bank of America Corp. (NYSE: BAC).
Earlier this week, David Sokol, the man touted as the successor to the fabled investor, Warren Buffett, president of Berkshire Hathaway, suddenly resigned without warning. Then the plot sickened. It has emerged that some time ago David Sokol bought shares of Lubrizol Corp. for his own portfolio. Sokol spent $10 million for the shares. About a week or 10 days later, Sokol recommended that Buffett buy shares in Lubrizol Corp. Mr. Buffett then proceeded to buy a large position in Lubrizol (seems to me he spent $9billion for the shares). This drove the shares of Lubrizol up. Mr. Sokol then sold his private position and made a tidy $3 million on the deal.
Buffett and Berkshire's investments broadened the company's portfolio beyond its financial and consumer-related investment focus.
A Berkshire financial filing showed a $46 billion cost basis in the company's equity investments as of Sept. 30: About $15.9 billion in "banks, insurance and finance," $12.5 billion in "consumer products," and the remaining $17.4 billion in "commercial, industrial and other."
That's a 168% rise in the "commercial, industrial and other" category from Dec. 31, 2010 when such investments totaled only about $6.5 billion, and a 62% increase from 2011's second quarter.
Summary from Barclays Capital inst sales:
1) At this point, it seems Italy is now mathematically beyond point of no return
2) While reforms are necessary, in and of itself not be enough to prevent crisis
3) Reason? Simple math--growth and austerity not enough to offset cost of debt
4) On our ests, yields above 5.5% is inflection point where game is over
5) The danger:high rates reinforce stability concerns, leading to higher rates
6) and deeper conviction of a self sustaining credit event and eventual default
7) We think decisions at eurozone summit is step forward but EFSF not adequate
8) Time has run out--policy reforms not sufficient to break neg mkt dynamics
9) Investors do not have the patience to wait for austerity, growth to work
10) And rate of change in negatives not enuff to offset slow drip of positives
11) Conclusion: We think ECB needs to step up to the plate, print and buy bonds
12) At the moment ECB remains unwilling to be lender last resort on scale needed
13) But frankly will have hand forcedby market given massive systemic risk
LCH Raises Deposit Charge on 10-Yr Bonds to 11.65% From 6.65%
*MERKEL REJECTS GERMAN REFERENDUM ON EURO MATTERS, DPA SAYS
Italy’s Berlusconi: No alternative to early elections, sees voting in early Feb
The Lodo Alfano, named after him, was a law, valid between 2008 and 2009, granting immunity from prosecution to the four highest political offices in Italy (President of the Republic, Presidents of the two Houses of Parliament, and Prime Minister). It was widely criticized as a copy of the Lodo Schifani, declared unconstitutional in 2004, and was seen by critics as an ad personam law aimed primarily at stopping trials involving Berlusconi. The Lodo Alfano was declared unconstitutional by the Italian Constitutional Court in October 2009.