Comments on: Does a European fire break exist? A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 By: STORYBURNcom2 Mon, 24 May 2010 22:43:40 +0000 Now that Germany has agreed to quit whining and fall in line with the ECB’s plan, the debt can has been kicked WAY down the road and that’s a good thing for the euro.

By: HBC Mon, 24 May 2010 21:30:23 +0000 Where there’s no smoke break, there’s a fire break.

Track 2 from ‘Pricing In The Cost Of Chaos’ – latest record release by suave debonair blogger, international economist, TV personality and spiffy-dressing poly-talent Felix “DJ DrAchmaD” Salmon of that ilk, for it is he.

In stores and online everywhere.

By: DanHess Mon, 24 May 2010 18:51:39 +0000 El Erian wrote:
“The unwind of unstable investor positions is still in its early stages. Having over-romanced the cyclical bounce, some investors are now scrambling to reposition their over-extended portfolios now that structural problems are undeniable. The resulting unwinding of overleveraged trades will inevitably disrupt a very wide range of other assets as the good gets contaminated by the bad.”

“We here at Pimco thought we were smart by buying German debt and avoiding Greece, which was obviously screwed. Now Germany is letting those dummies who invested in Greece escape and Germany will be left holding the bag, leaving Germany unable to cover its own hide. We are suddenly less fond of German debt.”

By: txgadfly Mon, 24 May 2010 18:34:51 +0000 The debate is not whether the price of overspending will have to be paid, but is who will be forced to pay.

— it could be the recipients of the overspending

— it could be the rich and powerful

— it could be the weak, uninvolved, and innocent

Any bets on where the burden will fall? Again.

By: DanHess Mon, 24 May 2010 18:06:11 +0000 A firebreak would be for Germany to leave the Euro and become Germany again. The reason Sarkozy fought so hard for Greece is because France and Greece are comrades in socialist decline. France’s ridiculous pension ponzi scheme should cause it to be forcibly ejected from the Euro, in a big bang that tosses out Greece, Spain and Italy.

Ah, France, another nation along with Greece, Spain and Italy that has a longer life expectancy than hard-working Germany. The Germans must be taught in school to feel really guilty over the crimes of their ancestors, that they put up with this.

By: umeshgeeta Mon, 24 May 2010 17:03:07 +0000 At some point these politicians will have to take on publicly Mohamed El-Erian to spell out what does he think the solution is. So far what we know is he is asking for Greece default. That is just one piece. So say German and French banks have exposure to Greece bonds and let us say ECB compensates these bank. So you are on one hand having a sovereign default and on the other hand European Bank bailout. Does that get any worse? Even if all of the current politicians are defeated in elections and replaced by a new batch; having done these 2 things (sovereign default and European bank bailout); is Europe’s problem going to get solved?

Further when politicians undertake public dressing down of Mohamed El-Erian, they can keep asking “and while you are advising how to untangle this mess, will you please let us know how those prescribed moves will help PIMCO?”. You see the problem – both for El-Erian and Establishment?

I am not doubting sincerity of El-Erian. But at some point this ‘criticism while sitting on fence’ either got to be fully internalized by ECB without going public or need to be shut up. Else it is really counter productive collectively.

If we think Mohamed El-Erian is such a smart pant, then why is he not in the room with ECB folks? Granted, politicians would hate that since they are on the hook ultimately, but what good it is he staying out of the room and crowing about all this? Public has an interest in bringing all these so called smart folks together to address the problem collectively. Else we will be paying the price via ‘double dip’.

This generally does not happen with war. Only retired Generals can comment about that as there are no ‘private parties’ in many cases unlike economic crisis situation.

By: johnhhaskell Mon, 24 May 2010 15:04:43 +0000 Why do these Greek commenters never end their comments by saying “and I am filling my boots with high yielding Greek debt”? 8% for a sovereign that won’t default sounds like a pretty good yield to me, if you believe anything you’re saying.

By: Wicki Mon, 24 May 2010 13:22:31 +0000 I totaly dont agree!

By: panosp Mon, 24 May 2010 12:39:19 +0000 I totally agree.

By: dinos Mon, 24 May 2010 09:16:13 +0000 greek government has launched a very severe austerity plan combined with a sincere and effective war against tax evasion and black economy(almost 40% of gdp).Greece will not default and will be soon an extremely positive surprise worldwidely.