You clearly hadn't heard that she's now employed by J P Morgan at their London operation. She is the new Whale.

Spannish Professor Pedro Schwartz was asked on Bloomberg what advice he would give to Rajoy. He said “SHORT SPAIN”. OMG where’s the exit

Schwartz is a real gem. See here (at 35.15) how he sticks one over on Nobel winner Paul Krugman, who clearly does not like it up him. Kruggers totally loses the plot after (at 48.20).

Also Kruggman wears horrible Honey Monster shoes such as a brothel creeping school economics teacher might have.

Yes, I'd noted that. Seems incongruous to say the least that someone of his (alleged) authority has such a glaringly obvious wardrobe malfunction.

http://www.zerohedge.com/news/ultimate-krugman-tak...

ETA link. (Skip to about 35 mins for Schwartz's bit. Krugman follows.)

Euro at 1.28 - time to go classic car shopping in the Eurozone - there are benefits!

Oh dear, it's all gone turba longua (Spanish for peat tongue) in Madrid today.

10yr yield now 7.22% and rising, IBEX down by over 5%. Who'll put money against a full-on sovereign bail out next week when things get even worse on monday morning?

The Germans only voted yesterday to bail out Spanish banks, not the whole country. Now we'll see what the EFSF lifeboat is really made of (papier mache I reckon). It looks like events are not only overtaking Angela, but actually lapping her faster than Vettel running against Timo Glock in a Marussia...




Poor old Ahoy, he's a LOOOOO-ZZZERRRRR

Now that is a real challenge for the EU to fudge effectively. Oh Dearie Me! Europe going in their annual holidays too. What a pity. How sad.

Clearly the markets perceive the reality that Spanish debt is risky. And as Andy Zarse says this is only the day after Germany agreed to bail out the Spanish banks.

I think the the EFSF will struggle with this particular problem. The lifeboat will need to be self righting!

I agree, the question is which of the events could occur first to precipitate the defaults. I do think that we are well beyond the point of recovery for any of the insolvent states. The entire infrastructure of Greece and Spain and Portugal are beginning to collapse as others have reported repeatedly in this thread. Not to mention the biggest defaulter by far, Italy.

I also think that, given the ramping effect of the mounting losses that the EU has made with each individual defaulter, being bailed out, added to the pile of the huge overall defecit that faces the EU, in this, there must be a real possibility that the first default will inevitably, pull the others nearer the edge. The Domino effect may precipitate a series of defaults: that could change the face of Europe

www.bbc.co.uk/news/business-18921663

I still say the fudging will continue, for the EU political class there is no other option.

You are entitled to your view. Based no doubt in your assessment of the probable outcome. I have no more knowledge in this than you. We are both expressing opinions based in our individual assessments.

My reason for anticipating collapse is that the EU does not appear to be prepared to directly subsidise the defaulters with cross border guarantees from other states. Finland only released their bail out contribution recently, when they had achieved what they considered to be, adequate direct security. I think the security they achieved is very suspect but the principle was established. Without security Finland will lend no more ti the defaulters.

The EU is freezing the defaulters in a timewarp of default, tied into a currency that they cannot afford, with no way of addressing the growing internal unrest within their states.

If the EU were prepared to permanently subsidise the defaulters I think this could continue. It would appear the EU will not actually do that, but are lending the money to the defaulters. It will never be repaid. By increasing the debts the EU worsen the insolvency. IMO.

Unless this bridge is crossed by the EU I cannot see how the defaulters can carry on. But I do understand your view that the EU will push this on as far as they can, and the EU have big pockets. The question is which bit breaks first I think.