Recent comments by Rajesh

Bubblisimo Gerkinov wrote:

which GOP hopeful isn't a total joke at this point?

If Michele Bachmann would join the race, Rand Paul would only look half-crazy.

Mary wrote:

6.7% at the end of 2010
equals 3%.

the number is the debt to GDP ratio not the budget deficit as a percentage of GDP.
6.7% < 60%, they actually ran a budget surplus that year.

yuan wrote:

If you think that is shocking

He's actually progressive since he believes there are black people who aren't nNo one 17 and under admittedrs.

spectre151 wrote:

Have we seen an update on the "distressing gap" in a while?

Scheduled:
----- Tuesday, June 23rd -----
10:00 AM: New Home Sales for May from the Census Bureau.

Normally a distressing gap post occurs after both existing homes sales and new home sales are reported for the previous month.

- NY Times

The AP reported earlier this month that police in Florence discovered that more than 4.5 billion euros ($5 billion) in proceeds from counterfeiting, prostitution, labor exploitation and tax evasion had been sent to China in less than four years using a money-transfer service.

Nearly half that money was funneled through the Bank of China, which in turn earned a commission, according to Italian investigative documents.

Investigators said they got nowhere when they tried to appeal to Chinese authorities for help. Once the money left Italy, it vanished behind China's great legal firewall.

Mary wrote:

All EU member-states' budgets exceed the "Stability and Growth Pact"

Estonia - Wikipedia, the free encyclopedia

According to Eurostat, Estonia had the lowest ratio of government debt to GDP among EU countries at 6.7% at the end of 2010.[143] The world media has lately started to describe Estonia as a Nordic country, emphasising the economic, political and cultural differences between Estonia and its less successful Baltic neighbours.[144]

As far as I know, Estonia is the only Eurozone country to meet all conditions of the Stability and Growth Pact.

Mary wrote:

Is or is NOT structural adjustment programming ("austerity") a pre-requisite to adoption of EUR?

Adoption of the Euro requires "Convergence." This may or may not include "austerity" depending on whether Angela Merkel finds your head of state cute or not.

KidPsych wrote:

maybe a little self-medicating would have been okay.

Do we need to give racists an exemption from the Federal cigarette tax?

josap wrote:

Good cop - Bad cop.

Merkel has not been the sharpest tool in the toolchest during the European debt crisis. I still remember when she single handedly brought the Euro to the brink of disaster. I think she has a different understanding of the problem than the other members of her party.

Merkel and her finance minister have been sending mixed messages. Schäuble has been sending a take it or leave it message. Merkel has been talking about room for compromise (though she doesn't say that she expect Greece to do most of the compromising.)

josap wrote:

Who is allowed to set currency controls?

The Greek Parliament.

Citizen AllenM wrote:

the euro will end first.

Despite the best efforts of Presidents and Congress, the dollar is still around. Currencies have a way of clinging to life even in adverse circumstances.

I'm sure the free market Republicans are going to dismantle Fannie and Freddie any day now.

It's all fun and games until the tanks bankers start rolling over the border.

arthur_dent wrote:

ECB backing the country national banks

Perhaps the ECB can back the banks, but will it? How does it handle it's dual role of lender of last resort and enforcer of EU austerity policy? The President of the Bundesbank has been complaining for months that the ECB is doing too much to prop up the Greek banking system. So far he has been out-voted. How much longer?

It may get away with threatening the destruction of the Greek banking system. But will if be credible if the Spanish anti-austerity party comes to power and the ECB threatens to destroy the Spanish banking system? What about the Italian banking system? the French banking system.

arthur_dent wrote:

To make the Greek claim credible, someone would have to make the argument for a credit market "margin call" of sorts.

A bank run is a form of margin call, as depositor call for their money from the bank. We've already seen deposits disappear during the Cyprus panic. If something similar happens in Greece, how will depositors in Portugal feel about that? If deposit flee Portuguese banks, how safe will Spanish depositors feel?

Greece says ECB won't let its banks collapse
| Reuters

The European Central Bank will not allow Greek lenders to collapse as this would create a domino effect and topple banks in other parts of Europe, a Greek state minister said on Saturday.

As Greece moves perilously close to default and a possible exit from the euro zone, the ECB expanded emergency funding to keep Greek banks afloat, as nervous savers withdrew billions of euros from local lenders in recent days.

"The ECB cannot let banks collapse," State Minister Alekos Flabouraris told Greek Mega television. "They know that if Greece's banking system collapses, there will be a domino effect."

What a relief!

Mary wrote:

What is "broke"?

There is the financial acumen that made Dick Fuld such a good CEO.

Tom Stone wrote:

A change in the wind and the stampede will be on.

Fly, little lemmings. Fly!

sm_landlord wrote:

Is the FDIC run by Homeland Security now?

I think they went to some conference in Athens this weekend.

Hey! Last person to withdraw money from a Greek bank, turn out the lights.

Bubblisimo Gerkinov wrote:

The students sew soccer balls for export to Bangladesh.

At least they're not assembling fireworks like the students in China.

In the right direction?

Red Team ?

josap wrote:

VAT would kill retirees.

Feature, not bug

Who wants to own stocks over GrExit weekend?

Outsider wrote:

so you can't compare prices.

You were hoping for ObamaSleep Silver?

josap wrote:

What does this headline tell us?

Written by a Realtor?

josap quoted:

in case of insolvency this year,

What happens if they become insolvent next year?

The Fundamentals are getting Fundamentaller!

josap wrote:

The Greek banks can buy Greek gov bonds with the funds from the ECB.

The ECB has a cap on the amount of Greek gov bonds that banks are allowed to hold.

vtcodger wrote:

Could easily be wrong, but I think the ECB may be legally required to lend money eurozone banks.whose depositors are withdrawing their money for any reason.

The ECB is only allowed to lend to solvent banks using good collateral. The ECB doesn't believe that Greek bonds are good collateral anymore. ELA is approved by the ECB but provided by the Greek Central bank.

This is ELA: An insolvent bank issues bonds. The bonds are guaranteed by an insolvent government. The banks can then use the bonds as collateral at an insolvent central bank.

josap wrote:

I live in a 3rd world state.

It's 3rd world by choice, that makes it extra special.

Belmont wrote:

It's all about the experience for me.

Chinese shareholders have experienced a 12% decline this week.

Love Rollercoaster - The Ohio Players (1975) - YouTube

josap wrote:

10% of disposable income for a mortgage payment doesn't make sense.

The chart would be different if it was by quintiles.

Translation: Americans aren't doing their part to support FIRE.

Be patriotic, America, bury yourself in debt.

Barley is the grain the built civilization. Otherwise you can't make Beer .

Euro zone sets emergency summit on Greece as money flees
| Reuters

Athens reported a steep 24.6 percent fall in its revenues in May, including a 50 percent fall in tax returns, even though the central government posted a primary surplus before debt service in the first five months of this year.

Finance ministry officials said it was mainly due to a slump in tax payments by companies, hard hit by a return to recession.

josap wrote:

have all the extra tp they will need.

What happens when the ATM stop dispensing?

Fair Economist wrote:

I believe the exiting country must petition the EU, then there's a two year waiting period, then an exit treaty must be approved by the EU unanimously

There is no process for leaving the EU (or the Eurozone) in the founding treaties. Just as there is no process to succeed from the Union in the Constitution.

josap wrote:

I hope not.

The ECB has been drip feeding the Greek banking system cash. If they are getting paid, they could take their marbles and go home.

Greece has a payment to the ECB due tomorrow. It's small but I wonder if they'll bother to pay it.

This is emergency summit number forty-six for the Greek crisis.

burnside wrote:

They have never had to deal with open, publicized refusal.

Um, What about Argentina and Ukraine?

Who's going to win the Potemkin Primary?

Rob Dawg wrote:

All the lefties have stopped annoying the real candidates.

There are real candidates?

merchants of fear wrote:

Can't live without him.

I'm willing to give it a try.

Third default is the charm!