By Don Quijones: The story is now playing out across Europe’s bailed-out nations. The losers are by and large the poor and middle classes, while the beneficiaries are the same as always: the world’s largest multinational corporations and banks.
Entries in Europe (322)
Head of EU’s Newfangled Bank Regulator: Markets Are Dumb, Pumps Stocks Of Teetering Banks To Keep them From Toppling
It's not often that a bank regulator proclaims stocks of teetering banks are undervalued because markets are too dumb to value them correctly. That’s what Danièle Nouy, chair of the ECB’s Single Supervisory Mechanism just proclaimed. She has a motive.
By Don Quijones: It was the first nationally coordinated grassroots response to repressive social and economic policies and widespread corruption of Spain’s ruling political caste. But it descended into violence – as the government is playing a dangerous game.
By Don Quijones: Revelations of a dirty, big business in Europe, and of the role banks play to make it possible. In fact, during the financial crisis, European banks “were as good as saved by the global drug trade.”
By Don Quijones: “You’re making a grave mistake,” the CEO of Catalonia’s megabank La Caixa allegedly told Catalonian President Artur Mas. Like many big shots, he’s fretting over the prospect of independence from Spain - an existential threat to the region’s banks.
Finally we know why French government debt and French stocks have performed so well, despite the crummy economy, and why France has been spared so far the fate of Cyprus: the fiasco won’t happen suddenly in France, the bank reported. It will be slow and torturous.
By Don Quijones: “We have to fight corruption in order to build a new model of more sustainable and fairer growth,” pontificated the CEO of BBVA, a Spanish TBTF bank.
It took a while. But it had to come, the public warning shot – after some ferocious lobbying behind closed doors. No one in Germany is allowed to get in the way of the sacrosanct exporters. The German economy, to the chagrin of neighboring countries, is based on them.
By Don Quijones: Europe’s elite seeks to completely redraw the continent’s political and economic map – with or without the consent of the people – taking the countries of Europe towards an arranged political marriage of convenience. Of the elite’s convenience.
By Hilary Barnes, Euro Politico Twitting: The French have the idea that the way to keep the business sector flourishing is to stop larger companies from closing any of their plants. Now they have a law to back it up. No more jobs will be lost. Anybody can see that.
Danièle Nouy, chair of the ECB’s newfangled bank regulator that doesn’t exist yet, had a term for it: “do whatever has to be done” so that the banking sector “is seen as sound and safe and transparent.” Is seen as.... Smoke and mirrors.
By Don Quijones: By deciding to warn his customers about the risks of these toxic financial products — they should never have been sold to savers — branch manager Gómez Ortega set himself on collision course with the bank's head office in Madrid.
His US visit might give the French President the boost he sorely needs at home, because at home, things are getting mired down. The economy shriveled or had no growth in five of the last eight quarters. The dominant government sector is well, but businesses are failing in record numbers.
The ECB’s money-printing and bond-buying promise, lovingly dubbed Outright Monetary Transactions, became the bailing wire and duct tape that has kept the Eurozone together to this day. Turns out, it’s illegal under the EU treaties and unconstitutional in Germany.
It’s not like Europe is out of the woods, after years of recession, lurching from bank bailout to country bailout, and sweeping remaining fetid matters under the rug. But its banks are now sinking deeper into an even greater morass: the emerging-markets fiasco.
By Don Quijones: "We will not be taking any questions on the specifics of the Spanish situation."
Not that 2013 was such a great year in Germany, economically speaking, with growth stalling at barely above the zero line. But it was a superb year for extracting taxes from hard-working people. And it shoved Germany deeper into two decades of retail quagmire.
By Hilary Barnes, Euro Politico Twitting: Someone in the French government deleted 3,300 French names from a purloined list of accounts at HSBC Switzerland. Their revelation would have left the despised French "political class" red-faced and in deep trouble.
By Hilary Barnes, Euro Politico Twitting: Fallacious economic thinking is prevalent among politicians, but one had hoped that French President Hollande, who taught economics in his time, knew enough to make him a relatively safe bet if elected president.
By Don Quijones: Normally these two worlds co-exist relatively peaceably, barely cognizant of the other’s existence. Every now and then, their paths may intersect, only to quickly decouple. But this week they suffered a head-on clash.