I wanted to address a few headlines that are pressuring markets today. The first one was that Merkel’s CDU party voted to give countries in the euro the option to leave if they choose. This is more formality than anything because a country can leave only on a voluntary basis and can’t be pushed out by others. The 2nd headline was from German FM that said the ESM will not happen in 2012. It was originally scheduled to begin operation in 2013 but a few weeks ago European officials had hoped to bring it forward to 2012. I say, they can’t even agree on the EFSF let along add another mechanism to their bailout arsenal. The 3rd headline was Moody’s putting Credit Suisse on review for a downgrade following their earnings release a few weeks ago. Irrespective of these headlines, the market is behaving as it should based on the poor action in European bond markets today, particularly from Spain.

Category: MacroNotes

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

2 Responses to “What’s going on”

  1. super_trooper says:

    “a country can leave only on a voluntary basis “. Where did you get this from?
    Where does it state that a country is allowed to leave EMU?

  2. hankmeister says:

    In 2007 I visited Belgium because one of my (francophone Belgian) cousins was getting married. I remember being very flummoxed listening to my relatives in the 30′s complaining that the cost of real estate had grown to the point they were being forced to move away from Brussels. I was very confused because for the last 10 years I have had a front row seat to the real estate disaster taking place in the inland parts of California. I don’t think very many people really understand the global pervasiveness of the real estate bubble.
    There is still a lot of unwinding to be done.