Tuesday, July 3, 2012

Bankers in the Dock

http://www.telegraph.co.uk/finance/financialcrisis/9371153/Debt-crisis-Finland-threat-to-plans-to-unleash-ESM.html

The Finns are not going to follow Die Haus-Frau over the cliff (maybe).


Just in case my tirades against le vieux ennemi is a sure sign of bigotry, please read this obituary. A Frenchman of great stature, courage, resourcefulness, humour and self-abnegation. Un vrai héros. A giant among pygmies.


This is Monti achieving reform success. Frightening to think what failure might look like.


Look at the photo of von Rumply. A pitiful figure of a man. The President of Europe. Hard not to understand why even little Tony Bliar is so peeved at being passed over – for that! A man who couldn’t induce fear in a pork pie. Don’t even get me started on Barroso.


Die Kapitulation der Kanzlerin. What does it mean and why did she do it? Why on earth did she give that petulant little nobody, Francois Hollande de deux maîtresses, the grinning pleasure of telling the world dass er ihn zu blinzeln geaufzwingen hat? Especially after all the fighting words to the Bundestag earlier last week. She may well have signed her own political death warrant. For what? But Richard; for Wales??!!

I guess it can be interpreted as one more kick of the can down the road. The sound of a death rattle. But look what it did to Euro12: the Italians were all over ihrem Jungen. Busted morale at home and a huge fillip to the enemy camp. To watch Monti, after failing to get any serious reform going in Italy, gloating at her must have brought back pictures of Mussolini hanging by his heels.

There are possible explanations, I suppose. Merkel is scared to death of being accused of bringing the Euro-house-of-straw down. So she’d rather run the clock a little longer. Bury the deal in the small print. Rely on the Dutch, the Finns and maybe the Austrians to do the dirty work for her. (Remind them of Der Anschluß). Pray for rain to wash the game out. The number of players left on the creditor side of the EFSF/ESM ledger is dwindling by the day. The mendicant numbers swell correspondingly. On which side will La Belle France end up when the chips are down? (I can hazard a guess at that one). Socialism writ large – eventually you really do run out of other peoples’ money to spend. (See the USA and the UK). Maybe the judges in funny red hats in Karlsruhe will do for her what John Roberts of SCOTUS fame could not do for the good of the USA. There’s many a slip …. And most of the time they’re all talking promises, promises (which is cheap talk as we know). They seem to have figured out how to spend the same Euro thrice at least.

So we’ve arrived at another Euro-vacuum. The can duly kicked, more empty promises made, the Troika in black suits heading for Athens where they’ll find the books still cooked and the gap between wishful thinking and fiscal reality widening by the hour. Another big slug of Euro-cash will be needed to allow the Greeks to continue vital imports, which they may or may not pay for. Another haircut all around is a fighting certainty. Summer silly season is upon us when the Euro great and good all repair to their seasonal villas and pretend it will all go away come September.

We’ll have to wait and see if they are right. Meanwhile I have to confess I mis-read the intestinal fortitude der Deutscher Führerin.

What is it about City bankers? Barclays’ Diamond (American) gone; Lloyds’ Daniels (American) gone, Lloyds’ Horsa-Ortario (Portuguese) still recovering, Barclays’ Agius (token Brit) gone, RBS’ Fred the Shred Goodwin (Scot) gone to the pillory, title stripped, bowler hat punched through. Can’t the Square Mile generate any native born world class bank execs these days?

I wish you all a very happy July 4th wherever you may be.

Simon

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