They’d wanted to “blockupy” Frankfurt, Germany’s money capital, for four days with concerts, marches, and speeches to protest against the power of banks and austerity policies. But the city issued a blanket prohibition—highly controversial in a democratic nation. And on Saturday, when demonstrations were allowed, they became the background to the G-8 meeting at Camp David: a three-pronged attack on reason—with President’s Obama’s reelection at stake.
Europe
Horrific Moments of Greece’s Year 2011, in Video
by Wolf Richter • • 2 Comments
Greece suffered in 2011. The economy tanked. Unemployment jumped. The government, up to the gills in debt and cut off from the capital markets, went begging, and in return had to implement painful economic reforms. With their livelihood threatened, people demonstrated, and strikes paralyzed Athens, and street battles were fought with batons, teargas, and Molotov cocktails—horrific absurdities captured in an awesome and shocking video.
Rumors, Denials, and Visions of Chaos in the Eurozone
by Wolf Richter • • 2 Comments
While the G-8 leaders are schmoozing with President Obama during their slumber party at Camp David, and while the NATO summit, protests, and rallies are wreaking havoc on the streets in Chicago, Europe is re-descending into rumor hell—where good rumors, as we found out last summer and fall, are head fakes that cause huge rallies in the markets, and where bad rumors, though passionately denied by all sides, turn out to be true.
The Greek Extortion Racket In Its Final Spasm
by Wolf Richter • • Comments Off on The Greek Extortion Racket In Its Final Spasm
A sad incident got picked up by the German national media, made even sadder by the very fact that it got picked up: in the tourist town Monemvasia in Greece, some local guys accosted a 78-year old Dutchman who has lived there since the 1990s. They thought he was German. So he corrected them. “German or Dutch, it’s the same thing,” they told him and broke his jaw and nose. While the financial noose around Greece tightened.
The Endgame: “Greeks feel hopeless”
by Wolf Richter • • Comments Off on The Endgame: “Greeks feel hopeless”
On Thursday, rumors that Greece would have a government goosed the stock markets in Europe. While everybody was out to lunch in Frankfurt, the DAX ran up 110 points. In Athens, the ATHEX, which appears to be on a multi-year trajectory toward zero, jumped 4.2%. But on Friday, when it became clear that the rumor was just a rumor, the index resumed its downward trajectory. And Greeks went to bed without a new government.
Germany and France Kiss, Make Up, and Flip-Flop
by Wolf Richter • • Comments Off on Germany and France Kiss, Make Up, and Flip-Flop
Originally, François Hollande planned on visiting Germany on May 16, the day after becoming President of France, to meet with Chancellor Angela Merkel for some barbed-wire fence-mending. But now he pushed it up to May 15, the earliest second possible. At midnight, President Nicolas Sarkozy will hand him the keys to the Élysée Palace, while Merkel will be putting on lipstick for her dinner with him. And the flip-flopping has already started.
Japan’s Sanctimonious Finance Minister
by Wolf Richter • • Comments Off on Japan’s Sanctimonious Finance Minister
There are certainly some topics that Japan can lecture France on, for example standing in line. In Japan, a line is a display of communal discipline. In France, a line is something to be worked actively. Japan can also lecture France on designing and making cars and electronics. But the topic that Japan—fiscally the most undisciplined country in the developed world—can’t include in its sermon to France is fiscal discipline. And yet….
Blowback from Sarkozy’s Election Finance Shenanigans
by Wolf Richter • • Comments Off on Blowback from Sarkozy’s Election Finance Shenanigans
Europe greeted with excitement—or exasperation—the arrival of the “President of Growth,” François Hollande. And outgoing President Nicolas Sarkozy confirmed that he’d quit politics. He complained about journalists dogging him. “I’m spied on,” he said (ironically). “I hope they will leave me alone.” But that’s precisely what they won’t do because, on May 15, he’ll lose his immunity that has protected him against a ton of malodorous allegations.
Greece: “We Are Their Greatest Fear”
by Wolf Richter • • Comments Off on Greece: “We Are Their Greatest Fear”
“There are certain misconceptions that worry me: for instance, the misconception that whatever happens, we are not going to leave the euro,” said Evangelos Venizelos, former Finance Minister and president of the socialist Pasok party. But outraged Greeks are searching for alternatives, and on Sunday, they’ll get to vent their anger at the political elite.
David and Société Générale: Jérôme Kerviel Fights Back
by Wolf Richter • • Comments Off on David and Société Générale: Jérôme Kerviel Fights Back
Fighting back: Jérôme Kerviel, the meek-looking French guy who became famous in January 2008 as the junior trader who lost €4.9 billion at French mega-bank Société Générale. Accused of a litany of shenanigans, he was condemned to five years in prison, though he claimed that his bosses had known about and had tolerated his activities. He just couldn’t prove it…. until now.