Thye European Economy

kennyc · 05-27-2010, 06:18 AM

according to one aussie game show:

kennyc · 05-27-2010, 06:23 AM

Then there's this:

happy_terd · 05-27-2010, 09:26 AM

that chart...

My eyes!!!!

kennyc · 05-27-2010, 09:42 AM

And what about your lips?

Pablo · 05-27-2010, 09:44 AM

Just let the IMF enter the chart and you will see what's good!

happy_terd · 05-27-2010, 09:49 AM

Quote:

Originally Posted by kennyc

And what about your lips?

Don't read my lips.

Fat Abe · 06-04-2010, 05:44 PM

In the lending business, cash flow is more important than cash. Nothing improves cash flow faster than a low interest rate.

A blog by Michael Pettis discusses possible solutions to the Euro crisis, and within the chain of replies, someone suggests that China should lend some of the debtor nations around 100 billion USD.

http://mpettis.com/2010/05/don%E2%80...sis-for-china/

The rationale for this is pretty obvious. China exports a number of products to the European nations. Some examples are solar and wind energy generating devices. Since these are productive purchases, their financing should be viewed differently than frivolous purchases such as beef and pork.

On the home front, it is apparent that the nations in Europe with a surplus current account balance have the wherewithal to fund those with a negative balance. Thus, Germany, with $109.7 MM and Norway, with $58.6 MM could easily float a $100 MM low interest loan to their poorer neighbors. (Figures are based on 2009 estimates by the CIA). And this gets to the ultimate solution, lowering interest rates on the existing debt, to the same discount rate that the Federal Reserve has managed for US banks. I facetiously refer to this as a subprime loan to sovereign nations. Whether this is done by the IMF or some other agency is up to the Europeans (and US) to figure out.

beppe · 06-05-2010, 10:24 AM

Quote:

Originally Posted by kennyc

Then there's this:

I do not know where you got that nice picture. Most of Italy's enormous debt (the 3rd in the world) is with us Italians. Rich people, poor country. In realty is not so, because of the real estate patrimony. How much would you value Giulietta's balcony?

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wodin · 06-05-2010, 02:56 PM

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Halk · 06-05-2010, 03:09 PM

What puzzles me is this...

Why on earth was nobody hitting alarms when the Greeks were retiring en masse in their early 50s, while the Germans worked on and paid themselves less. Surely some country in the single currency must have noticed?

It's similar to sharing a flat with a group of people, and one of the other people borrowing the rent money from you every month, refusing to work, and spending any money they do get as quickly as possible. Surely you'd notice and say something before it got this bad?

05-27-2010, 06:18 AM	#1
kennyc The Dank Side of the Moon Posts: 35,891 Karma: 119230421 Join Date: Sep 2009 Location: Denver, CO Device: Kindle2; Kindle Fire	The European Economy according to one aussie game show: Last edited by kennyc; 05-27-2010 at 09:45 AM.

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05-27-2010, 06:23 AM	#2
kennyc The Dank Side of the Moon Posts: 35,891 Karma: 119230421 Join Date: Sep 2009 Location: Denver, CO Device: Kindle2; Kindle Fire	Then there's this:

05-27-2010, 09:26 AM	#3
happy_terd Banned Posts: 13,045 Karma: 10105011 Join Date: Jan 2010 Location: Finally made it to Walmart. Device: PRS 420	that chart... My eyes!!!!

05-27-2010, 09:42 AM	#4
kennyc The Dank Side of the Moon Posts: 35,891 Karma: 119230421 Join Date: Sep 2009 Location: Denver, CO Device: Kindle2; Kindle Fire	And what about your lips?

05-27-2010, 09:44 AM	#5
Pablo Guru Posts: 972 Karma: 4999999 Join Date: Mar 2009 Location: Rosario, Argentina Device: SONY PRS-T2, Kindle Paperwhite 11th gen	Just let the IMF enter the chart and you will see what's good!

06-04-2010, 05:44 PM	#7
Fat Abe Man Who Stares at Books Posts: 1,817 Karma: 10606722 Join Date: Mar 2010 Location: 50th State, USA. Also, PA, NY, CA, and elsewhere. Device: All of the Above	In the lending business, cash flow is more important than cash. Nothing improves cash flow faster than a low interest rate. A blog by Michael Pettis discusses possible solutions to the Euro crisis, and within the chain of replies, someone suggests that China should lend some of the debtor nations around 100 billion USD. http://mpettis.com/2010/05/don%E2%80...sis-for-china/ The rationale for this is pretty obvious. China exports a number of products to the European nations. Some examples are solar and wind energy generating devices. Since these are productive purchases, their financing should be viewed differently than frivolous purchases such as beef and pork. On the home front, it is apparent that the nations in Europe with a surplus current account balance have the wherewithal to fund those with a negative balance. Thus, Germany, with $109.7 MM and Norway, with $58.6 MM could easily float a $100 MM low interest loan to their poorer neighbors. (Figures are based on 2009 estimates by the CIA). And this gets to the ultimate solution, lowering interest rates on the existing debt, to the same discount rate that the Federal Reserve has managed for US banks. I facetiously refer to this as a subprime loan to sovereign nations. Whether this is done by the IMF or some other agency is up to the Europeans (and US) to figure out.

06-05-2010, 02:56 PM	#9
wodin Illiterate Posts: 10,279 Karma: 37848716 Join Date: Mar 2009 Location: The Sandwich Isles Device: Samsung Galaxy S10+, Microsoft Surface Pro

06-05-2010, 03:09 PM	#10
Halk Fanatic Posts: 538 Karma: 469999 Join Date: Feb 2008 Location: Scotland Device: Sony PRS-650 (PRS+ alpha - thanks Kartu!)	What puzzles me is this... Why on earth was nobody hitting alarms when the Greeks were retiring en masse in their early 50s, while the Germans worked on and paid themselves less. Surely some country in the single currency must have noticed? It's similar to sharing a flat with a group of people, and one of the other people borrowing the rent money from you every month, refusing to work, and spending any money they do get as quickly as possible. Surely you'd notice and say something before it got this bad?

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