Monday, July 23, 2012
Saturday, July 21, 2012
reply Sat, 07/21/2012 - 17:39 | 2639284new A Man without Q...
Even in the current state, the Spanish banks face realistic losses of €250bn. They have about €100bn of loan loss reserves, meaning the proposed bailout is not enough. Add to that, the federal government is out of money and the autonomous regions are in a huge hole, with a collapse in revenues and too many debts obscured over recent years. A full 50% of state spending comes out at the regional level, so the Spanish people are going to feel the consequences very soon.
In my view, there is not enough capacity in the EFSF even to cover Spain.
Since the inception of the Euro, the nation has gorged itself on cheap debt, which combined with a construction boom hid the fact that what little industry there was has been destroyed by the rise of the emerging markets. The productive economy was withering on the vine, while the country enoyed a debt fueled consumption boom. They cannot pay yesterday's bills and eat today. Of course, they will blame foreigners, blame bankers and especially the Germans, but the real problem is the corrupt and bloated public sector, who won't fix the problem because they can't accept it is them.
As for the solution, I genuinely don't see one. The warning signs were ignored by the European Union, the IMF, everyone went along with the fantasy, because it was so much easier to overlook. Even now, they somehow think you can stabilise real estate prices and allow banks to clear their books in an orderly fashion. The reality is, nobody wants to buy an unfinished apartment in the desert next to a golf course that was never built, especially someone with no money and no job. And without the cosy relationshp with the Cajas, the insolvency of the local governments is going to be quickly revealed.
Wednesday, July 18, 2012
There's only one problem with mainstream news reports BBC News started to ascertain that something was seriously amiss right after Syrian national TV reported the bombing: above about the Damascus bombing and likewise the response of the U.S. government to this news. It appears that no such bombing at the Syrian National Security Headquarters actually took place.
ts 15h Lina Sinjab @BBCLinaSinjab Just walked around national security building and saw no sign of explosions, no broken window, no heavy security presence #Damascus #Syria Expand Reply Retweet FavoriteLina Sinjab BBC
Lina Sinjab @BBCLinaSinjab Residents very close 2 building said they haven't heard any sound of explosion or gunfire, haven't seen insured being removed either #Syria Collapse Reply Retweet Favorite
Italian Prime Minister Mario Monti warned Wednesday that the heavily indebted island of Sicily could face bankruptcyand called for the governor of the autonomous region to step down.
Tuesday, July 17, 2012
More than 200 black cabs arrived in Parliament Square just before 2pm blaring their horns to onlookers’ bemusement. Their demonstration is targeted at Games organisers who developed the so-called Zil lanes available only to Olympics officials, athletes and other approved vehicles.
Monday, July 16, 2012
Friday, July 13, 2012
Thursday, July 12, 2012
Wednesday, July 11, 2012
July 10, 2012, 11:17 p.m.
San Bernardino on Tuesday became the third California city in less than a month to seek bankruptcy protection, with officials saying the financial situation had become so dire that it could not cover payroll through the summer.
“We have an immediate cash flow issue,” said Interim City Manager Andrea Miller, according to the Los Angeles Times. Miller said the city has already stopped paying some vendors, and may not be able to make payroll over the next three months.
Sunday, July 8, 2012
Redha Al-boori@Redha_ph Breaking news: the number of injured peaceful protest in #Qatif rose to 20 (with live ammu, som of the are critical) @Dima_Khatib @gamaleid Expand Reply Retweet Favorite 1hRedha Al-boori@Redha_ph I just received bad news from Qatif , I hope it's wrong :( Expand 1hRedha Al-boori@Redha_ph انا لله وانا اليه راجعون .. يامنتقم