wizofoz, Which banks do you think will fail?
I looked Amanda Lang up and want 1 minute of my life back.
I think the Euro will survive. Whether it survives with everyone still in it is a separate question. But that doesn’t mean that Europe isn’t going to have to bite off some serious pain before things get better. And that pain is either going to be inflation or even worse recession or both. It’s Europe’s two largest economies vs. almost everyone else, and even France’s banks are beginning to look wobbly. The US is not in a position to help much. So the Europeans are going to talk and talk and discuss preparations for discussions about a framework for making a plan to have a plan for a working group to create a proposal that will be considered by the Council of Europe at a later date to be determined, and in the meantime they’ll chip in a hundred billion or so to try to keep interest rates from going through the roof. But where is that hundred billion going to come from? The ECB isn’t printing them; in fact, it isn’t in their charter to do it. And then eventually some banks are going to discover that they can’t meet their capital requirements, because the sovereign bonds in peripheral countries have eaten up their equity cushion while other interest rates have risen because of general risk concerns, and then we are going to finally discover who wrote CDSs on whom and who can’t fulfill their obligations. The interesting question is who over here in the US and Canada and China is exposed to this too. When the tide goes out, you discover who’s swimming naked. Politically, what pretty much needs to happen is that the funder countries need to receive more officially recognized powers in the EU or at least EMU in exchange for their monetary contributions. That’s ultimately the way things work… we’ll give you money, but we now reserve the right to tell you how to run your affairs. This in turn means that the peripheral countries will need to surrender some of their autonomy and sovereignty or exit the EMU. That is simply not a process that can take place in a month or two (well, I guess the exiting could), because it requires building new organizations, institutions, voting rules, and funding it. Until I conclude that these scenarios have either taken place, are most of the way complete, or no longer need to happen, I’m not ready for major equity exposure.
Well I am proud of you frank, even if you’re a bit of a goof.
Frank, please stop sending me racist PMs. I know you’re a racist redneck canuck, but that doesn’t give you the right to disparage an entire race. Love, CFAvsMBA, Proud Brooks Brothers’ Brotha
how can you say that? you have to watch her on cbc.ca on the Lang and O’Leary exchange. super hot classy babe.
Another term I hate hearing, “Well, this is the new normal!”
I’m waiting for the nude normal.
Amanda Lang still looking hot in her pumps…
I simply hate hearing most people trying to discuss the economy. Most people have absolutely no effing clue what they’re talking about and always think that they’re right.
^ Respect.
Bump for a career post.
Good to see some old posts from the late Frankie.