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Good Monday morning. After a delightful weekend, its back to work.

Once again, the pesky Europeans seem to be grabbing all of the attention again. Moody’s downgrades Cypress Cyprus, and the likelihood of that nation-state needing a bailout is near 100%. Spain makes it official request for a bailout. All of which will be capped off  by the European Union summit taking palce at the end of the week.

This is # umpteenth in a long series of European meetings designed mosztgly to disrupt short sellers rather than actually accomplish anything. The region’s banks are still laden with excessive amounts of sovereign debt, as most of the EU slips into a recession. Note that Oil remains in freefall as commodities enter an official bear market.

The bailout pig continues work9ing its way through the python, as Central Bankers around the world prop up economies and the financial sector to the detriment of the rest of the economy.

Corporate profits are at record highs, but likely to have peaked; Unemployment has improved, but marginally. Sentiment is better than it was during the 2008-09 crisis, but not nearly as strong as healthy economies enjoy. Ideological asshattery ensures that there will be no intelligent rational resolution of most of these issues anytime soon. Oh, and its an election year, so partisan political childishness will continue to make sure that the news cycle is tedious as humanly possible.

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If we had a time machine that allowed us to bring back newspapers from the past 5 years to key players during the prior decade, do you think anything would have turned out differently?

 

Category: Bailouts, Markets

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.

15 Responses to “Look Out Below, Cyprus Edition”

  1. rjs0 says:

    you mean Cyprus…

  2. yon’ Ritholtz,

    that would be “Cyprus”, yes?

    or, is there ‘News’ from the Monterey Peninsula that I haven’t, yet, seen ?

    http://gocalifornia.about.com/cs/montereycarmel/a/montereypen.htm
    http://gocalifornia.about.com/sitesearch.htm?q=Cypress&SUName=gocalifornia

    ~~~

    BR: Holy brain-fart Batman!

    I’ll fix above

  3. PeterR says:

    Great QOTD above, from thousands of years ago.

    “An imbalance between rich and poor is the oldest and most fatal ailment of all republics.” — Plutarch

    Now that the world is, in a sense, one republic, the implications are uncomfortable IMO.

    What a tangled web we weave. The more you ignore history the more you are bound to repeat it. etc. etc.. Platitudes don’t quite cover things.

    Fasten seat belts.

  4. DrungoHazewood says:

    This is # umpteenth in a long series of European meetings designed mostly to disrupt short sellers rather than actually accomplish anything.

    Bimbo!

  5. Malachi says:

    “Don’t you know I’m loco.”

  6. ConscienceofaConservative says:

    Cyprus will not have any problems. Due to its strategic location both militarily and with regard to its recently discovered gas fields, the Russians and the Americans and perhaps others will trip over each other for the right to lend Cyprus any sums of dollars it wishes in exchange for military bases, or first dibs for economic cooperation.

  7. dead hobo says:

    BR wondered:

    If we had a time machine that allowed us to bring back newspapers from the past 5 years to key players during the prior decade, do you think anything would have turned out differently?

    reply:
    ———
    Yes. Each would have been a multiple time winner of MegaBall. Greece would have hid its debt better so their free lunch would have lasted longer. Otherwise, no.

  8. AHodge says:

    my cypriot half girlfriend tells me the cypriot banks are way broke from greek funding and lending
    that it would take more than the russkies yanks are willing to fix
    and like the other southern tier
    credit has turned off
    but as i understand from the latest rescue “plan” they dont get EC sovereign bond support either
    cut off like portugal Ireland and Greece
    vegetable gardens for them baby
    as she explained to me we should think of Cypriots (the greek part and nation) as true ancient greek stock
    on the wayward mainland they have been “polluted by slavic blood” and immigrants.

  9. rktbrkr says:

    my cypriot half girlfriend

    Is she half Cypriot or half female or half friend? LOL

  10. AtlasRocked says:

    The politicians talk just like the people talk politics, Barry. Good conversation starts right here at home.

  11. Concerned Neighbour says:

    My only hope is that if yet another bank bailout is necessary (and from my perspective it is just a matter of time), then we do it Swedish style. Of course, my same perspective of this farce is that the Fed is more likely to generate hyperinflation than allow the precious banks to suffer.

  12. Concerned Neighbour,

    maybe, better, ‘We’ take a hint from “The Land of the Eternal Heat-Pump”, and see some of..

    http://www.icenews.is/index.php/2010/05/06/former-kaupthing-bank-boss-hreidar-mar-sigurdsson-arrested-in-iceland/

    http://search.yippy.com/search?input-form=clusty-simple&v%3Asources=webplus-ns-aaf&v%3Aproject=clusty&query=Iceland+Jails+Bankers+that+broke+Laws

    though, if you do want to ‘Learn’ something, from the Swedes, try..

    http://www.guardian.co.uk/world/2011/sep/10/sweden-free-schools-experiment

    maybe, then, ‘We’ll’ understand that ‘Education’ can, indeed occur in a ‘Competitive Marketplace’..

  13. AHodge says:

    rktbrkr
    Shes all cypriot and all woman
    she is in london and we have only been out twice
    im trying to get lucky
    this is a serious challenge
    as she is a psychiatrist and partly onto me

  14. jonas says:

    Q: If we had a time machine that allowed us to bring back newspapers from the past 5 years to key players during the prior decade, do you think anything would have turned out differently?

    I think the only difference is that the US wouldn’t have let Lehman fail. Otherwise everything else would be the same, particularly Europe. Nothing’s happened there other than as a result of necessity.