Comments on: Spain and Italy mustn’t blow ECB plan http://blogs.reuters.com/hugo-dixon/2012/09/10/spain-and-italy-mustnt-blow-ecb-plan/ Mon, 20 May 2013 22:13:52 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: Robert-Q http://blogs.reuters.com/hugo-dixon/2012/09/10/spain-and-italy-mustnt-blow-ecb-plan/comment-page-1/#comment-471 Robert-Q Wed, 12 Sep 2012 23:05:18 +0000 http://blogs.reuters.com/hugo-dixon/?p=398#comment-471 Hey, Hugo, 3 years is not so short. Buying three year sovereign bonds of countries the Ratings Agencies are sending into junk territory amounts to major gambling with a hostage public's funds. As regards Spain, the government wants EU money, but they don't want to do anything for it. Spaniards know which way the wind blows and they have been steadily withdrawing their cash from the banks. Those with professional skills at the high end of the employment market are leaving Spain. After all, the job market is so bad, close to one-third are unemployed. Imagine the pressure on working conditions for those who are employed! Clever Swiss job boards like http://www.qual.ch even target top Spanish (and Italian) professionals and executives for work in Switzerland. Both Spain and Italy are experiencing capital flight -- money capital and human capital. Hey, Hugo, 3 years is not so short. Buying three year sovereign bonds of countries the Ratings Agencies are sending into junk territory amounts to major gambling with a hostage public’s funds. As regards Spain, the government wants EU money, but they don’t want to do anything for it. Spaniards know which way the wind blows and they have been steadily withdrawing their cash from the banks. Those with professional skills at the high end of the employment market are leaving Spain. After all, the job market is so bad, close to one-third are unemployed. Imagine the pressure on working conditions for those who are employed! Clever Swiss job boards like http://www.qual.ch even target top Spanish (and Italian) professionals and executives for work in Switzerland. Both Spain and Italy are experiencing capital flight — money capital and human capital.

]]> By: gordo53 http://blogs.reuters.com/hugo-dixon/2012/09/10/spain-and-italy-mustnt-blow-ecb-plan/comment-page-1/#comment-465 gordo53 Tue, 11 Sep 2012 12:00:07 +0000 http://blogs.reuters.com/hugo-dixon/?p=398#comment-465 This is yet another attempt to "paper over" the eurozone's economic problems, albeit on a much larger scale than previous endeavors. With a few exceptions, European economies are in or heading for a recession. If you look at a graph of gdp over time, the downward trend appears to be accelerating. Ultimately, central bank easing will not return the world to prosperity. There are too many converging negatives including monumental sovereign debt and an aging boomer generation for which even the healthiest of economies is unprepared. This is yet another attempt to “paper over” the eurozone’s economic problems, albeit on a much larger scale than previous endeavors. With a few exceptions, European economies are in or heading for a recession. If you look at a graph of gdp over time, the downward trend appears to be accelerating. Ultimately, central bank easing will not return the world to prosperity. There are too many converging negatives including monumental sovereign debt and an aging boomer generation for which even the healthiest of economies is unprepared.

]]> By: dareconomics http://blogs.reuters.com/hugo-dixon/2012/09/10/spain-and-italy-mustnt-blow-ecb-plan/comment-page-1/#comment-460 dareconomics Mon, 10 Sep 2012 15:49:11 +0000 http://blogs.reuters.com/hugo-dixon/?p=398#comment-460 Spain is in a lot of trouble. In fact, its financial situation is so dire, that even lower interest rates will not save it: http://dareconomics.wordpress.com/2012/09/06/actual-spanish-financing-needs/ http://dareconomics.wordpress.com/2012/09/08/actual-spanish-financing-needs-part-2/ Spain is in a lot of trouble. In fact, its financial situation is so dire, that even lower interest rates will not save it:

http://dareconomics.wordpress.com/2012/0 9/06/actual-spanish-financing-needs/

http://dareconomics.wordpress.com/2012/0 9/08/actual-spanish-financing-needs-part -2/

]]> By: Samrch http://blogs.reuters.com/hugo-dixon/2012/09/10/spain-and-italy-mustnt-blow-ecb-plan/comment-page-1/#comment-458 Samrch Mon, 10 Sep 2012 12:55:46 +0000 http://blogs.reuters.com/hugo-dixon/?p=398#comment-458 They may have some short term problems that have a short term fix. But such declines indicates long term problems in the real economy. They may have some short term problems that have a short term fix. But such declines indicates long term problems in the real economy.

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