Föhrenbergkreis Finanzwirtschaft

Unkonventionelle Lösungen für eine zukunftsfähige Gesellschaft

Archive for 2. Dezember 2011

The abyss and our last chance

Posted by hkarner - 2. Dezember 2011

Date: 01-12-2011
Source: Reuters By Carlo De Benedetti

In a magnificent book published a few years ago Cormac McCarthy imagines a man and a child, father and son, pushing a shopping cart containing what little they have left, along a back road somewhere in America. Ten years earlier the world was destroyed by a nameless catastrophe that turned it into a dark, cold place without life.

There is no history and there is no future. But there is an objective: to head south toward the sea. Mythical places, only vaguely perceived, where there might be salvation. The father is getting older and is ever more weary. But he has the child with him. And he has his objective. He wants to take him southward to the sea. Toward a future that may still be possible.

Today, is the western economy, in particular the Italian economy, that world destroyed by an Apocalypse? Are we pushing that cart, containing the few things we have left, toward a mythical sea of which we know nothing, or even what it is like or where it is? Den Rest des Beitrags lesen »


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Will Angela Merkel Act, or Won’t She?

Posted by hkarner - 2. Dezember 2011

Date: 01-12-2011
Source: Businessweek

Germany’s Chancellor has her reasons for insisting on severe measures to resolve Europe’s economic crisis, but while she stalls, further damage is being done

It was Thanksgiving Day in the U.S., but just another tension-filled Thursday in Strasbourg, part-time home to the European Parliament and thus the fulcrum upon which the world’s financial future teeters. Angela Merkel arrived uncharacteristically late, keeping Nicolas Sarkozy and Mario Monti waiting. No matter. The press conference couldn’t start without Merkel any more than a performance of Hamlet could begin without the prince.

The day before, the debt crisis that’s been spreading for two years singed Germany, as investors shied away from an auction of 10-year government bonds. By the market close, Germany’s 10-year borrowing costs stood at 2.2 percent a year, three-tenths of a percentage point higher than those of the wastrel U.S. For Merkel, it seemed like a moment of truth. Germany is the sole country in a position to prevent a collapse of the euro currency—an event that could trigger a financial crisis and perhaps another global recession. It’s only a slight exaggeration to say that the fate of the world is in one woman’s hands. Yet to the frustration, bewilderment, and mounting anger of leaders from Paris to Beijing to Washington, Merkel repeatedly has refused to act. Den Rest des Beitrags lesen »

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What kind of fiscal union?

Posted by hkarner - 2. Dezember 2011

by Benedicta Marzinotto, André Sapir, Guntram B. Wolff on 23rd November 2011, Bruegel Insitute Policy Brief

The euro area’s shortcomings have become abundantly clear. It was set up without powers of strict surveillance over macroeconomic imbalances, crisis management and resolution instruments, or adequate banking supervision and resolution tools. The core reason for these failures is the absence of a fiscal union with corresponding authority over fiscal, structural and banking policies. Attempts to right these wrongs have been ad hoc and have so far fallen short and moral hazard is prevalent. Financial markets are increasingly aware of these inadequacies, and have started to price in the possibility of the break up of the euro area. Den Rest des Beitrags lesen »

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Those Brits are soooooo helpfull, where would we be without them?

Posted by hkarner - 2. Dezember 2011

Date: 01-12-2011
Source: The Wall Street Journal
Subject: Britain Sounds Alarms on Crisis

LONDON—U.K. Prime Minister David Cameron on Thursday warned that a euro-zone break-up will lead to a steep decline in economic output across all the countries of Europe, including the U.K.

„Why? Because there would be massive dislocation, huge problems with European banks,“ he said in an interview on the ITV channel.

„So although we didn’t join the euro…and, frankly, it’s showing to be a bit of a mess, the break-up of it would be very bad for Britain. So I spend a lot of my time putting pressure on other European leaders to come up with a solution that will actually make sure that there is stability and growth in Europe,“ he said.

Mr. Cameron spoke shortly after Bank of England Governor Mervyn King said the euro zone’s debt problems will cause widespread economic damage in a way „characteristic of a systemic crisis.“ Den Rest des Beitrags lesen »

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