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Any idiot can face a crisis - it's day to day living that wears you out.
by ceebs (ceebs (at) eurotrib (dot) com) on Tue Mar 6th, 2012 at 02:06:46 PM EST
BBC News - Allen Stanford found guilty in $7bn Ponzi scheme

Financier and cricket mogul Allen Stanford has been found guilty by a court in Houston, Texas, of running a $7bn Ponzi scheme.

Stanford, 61, was convicted on 13 of the 14 charges.

He had pleaded not guilty to defrauding some 30,000 investors with bogus investments through his Stanford International Bank in Antigua to fund a lavish lifestyle.

He faces a sentence of up to 20 years in prison for the most serious charge.



Any idiot can face a crisis - it's day to day living that wears you out.
by ceebs (ceebs (at) eurotrib (dot) com) on Tue Mar 6th, 2012 at 02:35:17 PM EST
[ Parent ]
Eurozone crisis live: FTSE 100 posts biggest fall of 2012 - as it happened | Business | guardian.co.uk

Stock markets have suffered their worst day's trading of the year. The FTSE 100 closed down 1.8%, or 109 points lower, its biggest fall since 14 December. Fears over the global economy, and the slow pace of Greece's debt swap deal, were blamed - although City experts warned against panic.

New York shared in the selloff, with the Dow Jones index currently down around 200 points.

* Greece's debt swap deal creaked on. With just two days to go, Athens appears unlikely to hit a 90% take-up rate in its Private Sector Involvement -- despite its six biggest banks all offering their support. That would mean it would deploy Collective Action Clauses - as long as the take-up rate hit 66%.

The Greek goverment put fresh pressure on its creditors to take part, warning that bond-holders who rejected the deal would not be paid out later.



Any idiot can face a crisis - it's day to day living that wears you out.
by ceebs (ceebs (at) eurotrib (dot) com) on Tue Mar 6th, 2012 at 02:41:01 PM EST
[ Parent ]
Nissan to create 2,000 new jobs by building compact car in Sunderland | Business | The Guardian

Nissan will build its new compact car at its factory in Sunderland, creating 2,000 jobs and providing a major boost to one of the regions hardest hit by recession and spending cuts, the company says.

The business secretary, Vince Cable, will confirm at the Geneva Motor Show that the Nissan expansion - which will create 400 jobs at the factory and 1,600 more in the supply chain - was underwritten by £9m from the government's regional growth fund.

He will say: "The decision [from Nissan] is another clear vote of confidence in Britain's manufacturing industry, and vindicates the government's decision to put support for manufacturing at the core of its economic strategy."



Any idiot can face a crisis - it's day to day living that wears you out.
by ceebs (ceebs (at) eurotrib (dot) com) on Tue Mar 6th, 2012 at 03:00:47 PM EST
[ Parent ]
China's debt-GDP ratio hits 43 percent: ICBC - Xinhua | English.news.cn

China's government debt amounts to about 17.5 trillion yuan (2.78 trillion U.S. dollars), about 43 percent of the country's gross domestic product, Yang Kaisheng, president of the Industrial and Commercial Bank of China, said Tuesday.

The debt is composed of 10.7 trillion yuan of local government debt and 6.8 trillion yuan of central government debt, Yang said at a press conference on the sidelines of China's annual parliamentary session.

"Government debt in China now is at a controllable and secure level," said the banking magnate, citing the government work report delivered by Premier Wen Jiabao on Monday.



Any idiot can face a crisis - it's day to day living that wears you out.
by ceebs (ceebs (at) eurotrib (dot) com) on Tue Mar 6th, 2012 at 03:15:54 PM EST
[ Parent ]
Porsche managers charged with credit fraud - The Local
The investigation is yet another complication in the merger between Porsche and auto powerhouse Volkswagen.

The three employees, who remain unnamed, are accused of lying to a bank about the number of options Porsche held on VW ordinary stocks in 2009, when Porsche was in talks about the refinancing of a €10 billion loan.

When the bank questioned Porsche about its financial needs during negotiations, the three suspects undervalued the options by around €1.4 billion.


Any idiot can face a crisis - it's day to day living that wears you out.
by ceebs (ceebs (at) eurotrib (dot) com) on Tue Mar 6th, 2012 at 03:22:38 PM EST
[ Parent ]
A billion? Big deal, that's a rounding error.
by Upstate NY on Wed Mar 7th, 2012 at 09:05:07 AM EST
[ Parent ]
Nuke shutdown costs energy giant €1 billion - The Local
RWE said in a statement its net profit fell by 33.9 percent to €2.479 billion last year and operating profit declined by 24.3 percent to €5.814 billion on a 3.1-percent drop in revenues to €51.686 billion.

"For us, fiscal 2011 was marked by difficult economic and political framework conditions," RWE said. "The German government's nuclear energy decisions alone had a negative impact on the result of well over one billion euros."

In the wake of the nuclear disaster in Fukushima, Japan, last year, the German government decided to phase out nuclear power, forcing energy suppliers to shut down their profitable large-scale power plants and also levying a tax on the reactors' fuel for their remaining lifespan.

In addition, lower sales prices on the gas wholesale market and "persistently low margins in the electricity generating business all had an adverse effect on business performance," the group complained.


Any idiot can face a crisis - it's day to day living that wears you out.
by ceebs (ceebs (at) eurotrib (dot) com) on Tue Mar 6th, 2012 at 03:23:04 PM EST
[ Parent ]
Martin Wolk

The eurozone is at war with double-entry bookkeeping.


Wind power
by Jerome a Paris (etg@eurotrib.com) on Wed Mar 7th, 2012 at 02:23:59 AM EST
[ Parent ]
Anyone else finding that the FT has recently stepped up its protection against use of a well-known search engine to get round its subscription wall?
by afew (afew(a in a circle)eurotrib_dot_com) on Wed Mar 7th, 2012 at 04:04:39 AM EST
[ Parent ]
From Eurointelligence's daily briefing:
Martin Wolf on the fiscal compact

In his FT column, Martin Wolf describes the fiscal compact as fulfilling the definition of madness that consists of trying to repeat the same mistake all over again, hoping for a different outcome. His two main points are: the fiscal adjustment in Spain is too fast. Spain needs time for reforms. And second his: the programme lacks any consideration for the private-sector. This is what he had to say:

"In a paper published last month, the Commission indicated its intention to examine a number of countries running external deficits. These sinners are even named. Parallel analysis is needed of the surplus countries. The paper even raises the issue. But it does not dare to pick out specific surplus countries for close analysis. The eurozone is at war with double-entry bookkeeping."


There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Migeru (migeru at eurotrib dot com) on Wed Mar 7th, 2012 at 04:20:05 AM EST
[ Parent ]
the programme lacks any consideration for the private-sector
Because the Eurozone is not only at war with double-entry bookkeeping, but also with the public sector.

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Migeru (migeru at eurotrib dot com) on Wed Mar 7th, 2012 at 04:20:48 AM EST
[ Parent ]
Was just about to post.
by afew (afew(a in a circle)eurotrib_dot_com) on Wed Mar 7th, 2012 at 04:33:22 AM EST
[ Parent ]
Yes, because double-entry bookkeeping would be Modern Monetary Theory and we can't have that.

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Migeru (migeru at eurotrib dot com) on Wed Mar 7th, 2012 at 04:15:50 AM EST
[ Parent ]
Eurointelligence (e-mail bulletin):

In the argument about the risks of the 3y LTROs the Bundesbank appears divided and isolated

Ahead of tomorrow's Governing council meeting, the Bundesbank appears to be weakened by division and isolation, Financial Times Deutschland and Handelsblatt report. FTD writes that the leaked letter had provoked internal tensions in the central bank. Pragmatists had argued that it should focus on a strategy to get out of the ultra-generous liquidity measures. The hard liners on the other hand had insisted that the letter should contains proposals about additional collateral from the euro crisis countries to the ECB in order to cover the risks emerging from the ever increasing Target balances in the central banks of surplus countries such as the Bundesbank. The Bundesbank's claim that the leak was not done with Weidmann's knowledge or approval is not reassuring to the ECB and other euro central banks. The reason is that it implies that Weidmann is not in control of his institution and that there are powerful forces inside the Bundesbank working against him. In its main front page story, Handelsblatt points out the Weidmann's isolation within the ECB's governing council. According to the paper the Bundesbank president's insistence on risks has brought him to a similar degree of isolation from his colleagues as his predecessor Axel Weber was in before he resigned.

by afew (afew(a in a circle)eurotrib_dot_com) on Wed Mar 7th, 2012 at 04:15:01 AM EST
[ Parent ]
It has been evident for many months that the Euro crisis is an internal German political crisis. There's the Government, the Bundesbank and the Industrialists pulling in different directions. Now it appears there's also factional infighting within the Bundesbank.

As reality (in the form of an ever messier Euro crisis situation) intrudes these internal conflicts are gradually brought to a head. When they are resolved, there will be a resolution to the Euro crisis (in whatever direction: 'resolution' might mean anything from Germany leaving the Euro unilaterally all the way to Germany accepting fiscal transfers).

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman

by Migeru (migeru at eurotrib dot com) on Wed Mar 7th, 2012 at 04:25:02 AM EST
[ Parent ]
about the factions within the Buba.

It is rightly acknowledged that people of faith have no monopoly of virtue - Queen Elizabeth II
by eurogreen on Wed Mar 7th, 2012 at 04:30:48 AM EST
[ Parent ]
Who can write it?

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Migeru (migeru at eurotrib dot com) on Wed Mar 7th, 2012 at 04:38:11 AM EST
[ Parent ]
My comment below should not be taken to mean I have knowledge of internal factions right now. But we could collectively look for sources.
by afew (afew(a in a circle)eurotrib_dot_com) on Wed Mar 7th, 2012 at 04:48:38 AM EST
[ Parent ]
One recent source on German economic ideology is Münchau's Deutschlands heuchlerische Monetaristen (Germany's hypocritical monetarists).

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Migeru (migeru at eurotrib dot com) on Wed Mar 7th, 2012 at 04:59:40 AM EST
[ Parent ]
Also seen on ET before: The long shadow of ordoliberalism: Germany's approach to the euro crisis by Guérot and Dullien. Am I remembering correctly that you said you were writing a diary on that?

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Migeru (migeru at eurotrib dot com) on Wed Mar 7th, 2012 at 05:02:36 AM EST
[ Parent ]
That's the starting point.
by afew (afew(a in a circle)eurotrib_dot_com) on Wed Mar 7th, 2012 at 05:02:57 AM EST
[ Parent ]
Also of interest: Eurozone Watch: Monitoring economics and economic governance of the euro area, a blog by Sebastien Dullien and Daniela Schwarzer (the latter was the #1 candidate on Newropeans' 2009 European Parliament list for Germany).


There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Migeru (migeru at eurotrib dot com) on Wed Mar 7th, 2012 at 05:06:27 AM EST
[ Parent ]
Writings by Daniela Schwarzer.

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Migeru (migeru at eurotrib dot com) on Wed Mar 7th, 2012 at 05:08:44 AM EST
[ Parent ]
Also a new short piece by Dullien and Guérot on the ECFR site (previously on the Guardian's CIF), Why Berlin is fixed on a German solution to the eurozone crisis.
by afew (afew(a in a circle)eurotrib_dot_com) on Wed Mar 7th, 2012 at 05:10:37 AM EST
[ Parent ]
What does this mean for the rest of Europe, as they negotiate with Berlin and try to plot a route out of the crisis? The first lesson is that Merkel's intransigence is not some vulnerable ideological cul-de-sac, but one with genuine political support and coherent intellectual foundations. Attacking excessive austerity and demanding a renegotiation of the new fiscal treaty will simply fall on deaf ears.
Yeah, and what if Ordoliberalism while ideologically coherent is economically wrong in its analysis of the Great Depression? Do we need another Great Depression and to be able to pin the blame on Ordoliberalism (rather than racial fecklessness on the part of failing economies) when the whole continent comes crashing down?

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Migeru (migeru at eurotrib dot com) on Wed Mar 7th, 2012 at 05:14:50 AM EST
[ Parent ]
If they are right, this is not an internal German political crisis of infighting. It's a crisis of Ordoliberalism running head-on against the wall of Fisher's debt deflation.

I mean, seriously.

While much of the rest of Europe starts screaming about growth, the German reply is once more in keeping with ordoliberalism. Harsh austerity measures break the cycle of debt and the threat of insolvency, reassuring the private sector and thus triggering natural and sustainable growth. Failure to reach fiscal targets is seen as a political failure of will, and much of the eurozone crisis is seen as rising from an irresponsible straying from the path thanks to indulgence in low interest rates.

Underlying this harsh and unforgiving ordoliberal outlook is the national narrative of the German experience. In 1945 the country was in ruins, and look what happened. In the early 1990s, the richer western part of the country had to unify with the poor, ex-communist east, and look what happened. In the German mind, postwar success is firmly linked to ordoliberal policies, even if the reality might be more complex than that. These central tenets that lay out how to run an economy are largely an article of faith across Germany. Even the Greens have strong support for ordoliberalism.

Harsh austerity measures lead to debt deflation crises.

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Migeru (migeru at eurotrib dot com) on Wed Mar 7th, 2012 at 05:18:59 AM EST
[ Parent ]
Well, they're not talking about infighting at all. They are saying Germany is monolithic, deal with it ("deal" in a serious sense).

It really does seem important to understand what infighting there may be.

by afew (afew(a in a circle)eurotrib_dot_com) on Wed Mar 7th, 2012 at 05:28:22 AM EST
[ Parent ]
Underlying this harsh and unforgiving ordoliberal outlook is the national narrative of the German experience. In 1945 the country was in ruins, and look what happened. In the early 1990s, the richer western part of the country had to unify with the poor, ex-communist east, and look what happened. In the German mind, postwar success is firmly linked to ordoliberal policies, even if the reality might be more complex than that. These central tenets that lay out how to run an economy are largely an article of faith across Germany. Even the Greens have strong support for ordoliberalism.
See my comment a tale of two greens.

Also, this explains why the West-German old-school social democrats (Lafontaine's WASG) had to join the East-German ex-communists (PDS) to form Die Linke.

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman

by Migeru (migeru at eurotrib dot com) on Wed Mar 7th, 2012 at 05:35:26 AM EST
[ Parent ]
I'm doing a two-part diary on German economic ideology (Part Two on the BuBa). It's an historical view meant to help with background to the current situation.

Internal conflict is most certainly something we need to understand and estimate asap.

by afew (afew(a in a circle)eurotrib_dot_com) on Wed Mar 7th, 2012 at 04:44:07 AM EST
[ Parent ]
To add: the Euro Crisis becomes "an internal German political crisis" when one by one after another Eurozone deficit countries lose political leverage by being "attacked by the markets". The middle third of 2010 was the time when other countries could have exercised leverage at the EU level but didn't. After Deauville, it was all German politics with everyone else as spectators.

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Migeru (migeru at eurotrib dot com) on Wed Mar 7th, 2012 at 04:48:49 AM EST
[ Parent ]
From Eurointelligence:

SPD wants to coordinate with Francois Hollande its position on the fiscal pact

The opposition German social democrats want to coordinate their position on the fiscal pact with the French socialists and their presidential candidate Francois Hollande, Financial Times Deutschland writes. ,,Contrary to the federal government we will discuss the relevant points about the vote with our colleagues in France", Carsten Schneider, the SPD's spokesman for budgetary matters, told FTD. Hollande has announced that if elected he will renegotiate the pact in order to include stronger growth promoting elements. Angela Merkel is furious about this announcement and refuses to grant Hollande an appointment in Berlin. However she needs the SPD's votes since deciding the pact in Bundestag requires a 2/3 majority. The SPD is also in favour of more growth promotion.

Nico Fried thinks the SPD's threats not to vote for the fiscal pact are not credible

Commenting in Süddeutsche Zeitung, Berlin bureau chief Nico Fried is unimpressed with the Social Democrats' threat not to vote for the fiscal pact. Fried reminds his readers that the opposition SPD so far have always voted in favour of Angela Merkel's euro crisis decisions. ,,That was exceedingly responsible but in terms of votes it didn't pay off", he writes. ,,In any case the public prestige for rescuing the euro until now is only profitable for the chancellor." Fried continues to point out that contrary to the 2/3 majority requirement for the fiscal pact, the SPD's votes in the past were not really needed to get the required majority. He thinks that the Social Democrats will not just now, as their votes are really needed, refuse to vote in favour of the pact, which they have so far supported in principle.



Wind power
by Jerome a Paris (etg@eurotrib.com) on Wed Mar 7th, 2012 at 09:01:34 AM EST
[ Parent ]
the opposition SPD so far have always voted in favour of Angela Merkel's euro crisis decisions.

Which explains nicely why Merkel's approval is so high. The SPD acts like the junior coalition partner.

Von überall könnte das Volk, Urbrut alles Undemokratischen, Zelle des Terrors, über die gewählten Hüter von Wachstum und Wohlstand® kommen. - flatter

by generic on Wed Mar 7th, 2012 at 09:16:28 AM EST
[ Parent ]
And also means that Hollandde should run away from them as fast as possible!
SPD wants to coordinate with Francois Hollande its position on the fiscal pact
François, don't do it!

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Migeru (migeru at eurotrib dot com) on Wed Mar 7th, 2012 at 09:38:31 AM EST
[ Parent ]

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