Tag Archives: Merkel

Opening Quotes: European Price Tags

We continue to close in on something approaching an endgame.

The ‘solutions’ are now known.

But who pays? Who is the back-stop?

Germany – and lets be fair – has done the math & it made its position clear – it can’t do it alone.

But asking the non-Europena world to make the difference?

Might be right. But seriously tough call.


Budget austerity and measures to promote growth in Europe remain the twin pillars of stemming the crisis right now, Merkel said.

Her message that Germany can’t shoulder the burden alone is aimed at “all those in Los Cabos will be looking to Germany, who are expecting the ‘big bang’ and the solution from Germany – – such as euro bonds, stability funds, European deposit- insurance funds, additional billions and much more,” she said.

“All resources, all measures, all packages will end up being smoke and mirrors if it becomes clear in the end that they extend beyond Germany’s capacity,” she said.

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Opening Quotes: Optimistic Symmetries

I blame Wednesday’s ‘ESM-Bank Recapitalization’ balloon, but – in the face of horrendous $SPX price action – last week I found myself becoming way more optimistic about Europe.

I wrote about the ‘why’ last week – and please be careful as I’ve a desperate (& painful) habit of getting on the right side of the ‘macro strory’ before the technicals fall into line  ……

But this morning I unexpectedly found my favorite <long-time uber bear> Eurozone commentator offering a similarly <surprising optimistic> analysis.

It is now or never (again?) but – from an Irish perspective – I absolutely believe the seeds of the Eurozone crisis were sown in the everyone for themselves botched response to the Lehman collapse in September 2008.

Huge problems remain, but any sort of fully fledging BANKING UNION would be a seriously BIG DEAL and more importantly  – its ACHIEVABLE!!

Wolfgang Munchau (FT):

“Unlike six months ago, officials now realise there is no alternative to a banking union. The biggest danger now is that eurozone leaders change their minds. Ms Merkel has not made the case back home. A proper banking union would come as a shock to many Germans, including those in the media. It is still easier to be a pessimist, but I am not yet quite ready to give up what will probably be the last chance to save the euro.”

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Opening Quotes – Its All About Germany

Easter’s been and gone.

Merkel is Merkel.

Politics is domestic first.

“It’s partly about still being able to shape our own future,” Merkel said late yesterday at a rally in the city of Muenster in North Rhine-Westphalia. Countries in Europe that have run up debt “are so tightly in the hands of the financial markets that they can’t make independent decisions anymore. We have to watch out that high interest rates on our debt don’t lead to the point where we can’t decide and shape anything anymore” in Germany.


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