Spain, Ireland `Thrown to the Wolves' After ECB Move

[kashirin]

Quote from noparole:

Hey Poirot,glad to see you're as boring as ever.Almost fell asleep reading this last post,as if anyone cares whether you have a good accent,let alone if you speak "English fluent".

OK,here's a question for other posters:

Before you have to do a Google Search,can you think of 5 famous Belgians?

Really think.

Actors,sports stars............probably could think of 3 or 4 but that's pretty lame.Can you imagine NOT being able to name 5 famous Brits or Americans?Hardly.

No wonder Belgium joined the Euro.It was the only way anyone would remember anything they actually did.

Hey,Poirot,do yourself a favor and crawl back under YOUR stone.

one Russian professor came into the USA. He had very bad English. When he came to university everybody talked awful English
Then he asked other German professor
does anybody here speak fluent English with no accent?
German professor answered - do you see that black guy cleaning toilet? He speaks fluent English

 

[Pa(b)st Prime]

Quote from cvds16:

I guess you guys haven't even started in macro-economics 101 otherwise you wouldn't be saying this nonsense. If you want to stop inflation you got to raise rates, you can't expect to take see the effect of this a few hours later. Most americans would want something like the ECB instead of the weak FED.

+1

 

[Pa(b)st Prime]

Quote from gnome:

Let's not forget who CAUSED this inflation...

#1.. Central Banks pumping out the money like there would never be a consequence... they should be HORSEWHIPPED.

#2.. Gummints around the world spending more than they take in from tax revenues.

If they don't do something about it, we're in for an INFLATION FIRESTORM!!

You're already in the +1 Hall of Fame.

 

[Pa(b)st Prime]

Quote from Cutten:

Ireland and Spain (and other places) are facing recession because a large proportion of the population and financial system engaged in irresponsible gambling on real estate prices, using enormous amounts of borrowed money (i.e. other people's life savings). Not because the ECB chose to put rates at 4.25% instead of 4%.

I love this idea that a tiny difference in the central bank rate is the be all and end all of economic performance. You know, if rates had been higher over the last few years of obvious bubble, there *wouldn't be a recession* in the first place to have to worry about. How come the doves never consider that?

Leveraged gamblers live by the sword - they make huge gains during bull markets; so they should not moan when they die by it in bear markets as leverage works in the other direction. As a professional speculator, I am disgusted by the craven bleating and refusal to accept responsibility that the majority of these people are displaying.

Speculating is an honourable, noble, and productive activity. Whining because you couldn't hack it is not.

You too are in..well for you bro the +2 Hall of Fame.

 

[Pa(b)st Prime]

Quote from hrokling:

The ECB are doing a great job - they have limited choices and have earned the global markets' respect with their hawkish stance on inflation. Everyone's laughing of the puny Fed.

I urge those of you who're struggling with these BASIC concepts of economics to read up on J.M.Keynes - that's the 101 course for you.

I don't know you but +1

 

[Pa(b)st Prime]

Quote from zdreg:

"Spain and Ireland make up less than 15 percent of the region's economy and their economies together are about half the size of Germany's. Growth in Europe's biggest economy accelerated in the first quarter to the fastest pace in 12 years and manufacturing was still expanding in June. Spanish industry contracted by the most on record."
"However, all economic indicators now already do suggest severe weakness in the Eurozone, not only in Spain and Ireland but also in France and Germany. This by itself should tame inflation over the next 2-3 years. A series of hikes "

makloda vs. makloda. that is an even match.

economists can' predict correctly the day after tomorrow. you think you can predict inflation for the next two or three years. doubtful at best. a recipe for disaster at worse.
inflation is nothing more or less than a monetary phenomena resulting from the printing and the velocity of money

+1

 

[Pa(b)st Prime]

Quote from makloda:

Inflation is a lagging indicator. It takes a couple quarters of subpar GDP performance for it to be felt in lower (core)inflation.

-88

You just don't get it. If these CB's don't DRAMATICLTY stem the flow of money their currencies are going to be WORTHLESS!

WTF. Do you think Argentina etal just had bad mojo?? Commodity markets aren't JUST rising on global demand and various supply disruptions they're REJECTING any fungibility for cash at “normal” prices. IOW's OPEC and others are saying “the oil I give you provides life the paper you give me in return is something I'll be wiping my ass with.”

 

[cvds16]

Pedantic one who should have stayed under his rock, I couldn't care less if people know 5 famous Belgians, it's only in your narrowminded brain that that is important.
And next time (once again) get your facts straight: Belgium didn't JOIN the European Union, they ERECTED it. The EU started as a BENELUX (Belgium, the Netherlands and Luxemburg) treaty with France and Germany joining in a few years later which became known as the European Coal and Steel Community.
Now crawl back under your rock and stay there ...

 

[makloda]

Quote from Pa(b)st Prime:
-88

You just don't get it. If these CB's don't DRAMATICLTY stem the flow of money their currencies are going to be WORTHLESS!

WTF.

The ECB should be concerned their currency is going to be worthless after it appreciated against most currencies over the last 5 years (and as a result sentiment among mid-sized exporting companies all over the continent is imploding)?

What on earth are you smoking?

 

[makloda]

Quote from detective:
And Trichet is going to stand pat at 4.25%, so its not even a rate hike cycle, its a tiny bone thrown at the inflation hawks on the ECB. If a recession happens, it won't be because of this action, it will be because of past excesses.

We will see if they will stand pat. It seems Weber took over at the helm and the ECB has become an extension of the Bundesbank. It now seems the European unions are giving the hawks more than enough firepower:

http://uk.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUKL0133835820080701
"Ground personnel at Lufthansa represented by Germany's Verdi union are demanding a wage increase of 9.8 percent"

http://www.bloomberg.com/apps/news?pid=20601087&sid=aHB4kY9H3Iew&refer=home
"In Germany, the Ver.di labor union is seeking 8 percent more pay for its 420,000 members in private, mortgage and public-sector banks"

http://www.forbes.com/home/2008/07/03/wage-inflation-europe-markets-equity-cx_vr_0703markets01.html
"So far the main drivers of European inflation have been the same as most major developed economies: the surging cost of oil and basic food products such as dairy and wheat. But now economists and the European Central bank fear that inflation could be sent even higher by rising wages, as workers demand to be compensated for the spiralling cost of living."

http://www.fxtraders.eu/article.php?id=16528
"Furthermore Weber said that the ECB hike could accentuate an economic slowdown, and reiterated that central banks must act against second round effects."

"The ECB's Trichet reiterated overnight that the ECB raised rates to fight developing price risks, adding that current interest rates will help to deliver stable prices. Trichet said that the ECB cannot influence oil price and current inflation, adding that increase in oil and commodity prices create a demanding environment. Trichet reiterated that second wage price effects must be prevented"