Europe

Germany and France Kiss and Make up, But it’s hard

by Wolf Richter •  • Comments Off on Germany and France Kiss and Make up, But it’s hard

The Eurozone debt crisis gets worse. Bankers interfere. And the truth comes out:

“The dreams to see the crisis ended by Monday couldn’t be realized,” says the German government. Easy solutions have evaporated.

Greece’s Extortion Game

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“Tax fraud is a national plague,” said Greece’s finance minister after he found that Greeks owed $50 billion in back taxes. But it’s complicated. And not much will happen to collect them though Greece might go bankrupt in weeks. Meanwhile, civil servants paralyze the country with strikes because salaries and bonuses are on the chopping block—the most curious bonuses….

France’s Fishy Denials as Mega-Banks Teeter

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“We don’t have any doubt about the solidity of French banks,” said the French government—a week after the collapse of Dexia. All eyes are now on Société Générale and BNP Paribas. BNP is the world’s largest bank with assets of $2.8 trillion, dwarfing France’s $2.1 trillion economy. And they’re desperately trying to sell assets to stay afloat.

Geithner: The Truth Could Cause Significant Damage

by Wolf Richter •  • Comments Off on Geithner: The Truth Could Cause Significant Damage

During his congressional testimony, Geithner fretted that the crisis in Europe could undermine confidence. Alas, bank stress tests were supposed to inspire confidence—yet one of the “safest” banks just collapsed. If inspiring confidence isn’t based on facts and transparency, it’s a con game.

Euro Tidbit: The Lies of ‘Stress Tests’

by Wolf Richter •  • Comments Off on Euro Tidbit: The Lies of ‘Stress Tests’

Bailed-out Dexia, a major Belgian-French bank, is kaput again and will be broken up. Bondholders and counterparties will be bailed out. As usual, taxpayers will foot the bill. But remember the “stress tests” in July?

Greece ‘Finds’ Treasure, Stays Solvent For Another Month

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None of the financial shenanigans that the Greek government engages in on a routine basis, as shocking as they used to be, surprise anyone anymore … until there’s something that surprises everyone.

Reform Rebellion In Greece

by Wolf Richter •  • 3 Comments

Another avalanche of demands and plans to bail out Greece rolls over the Eurozone, but Greek society is digging in its heels. The prime minister talks a good game with foreign leaders when he promises reforms, but his own ministries just pulled the rug out from under him.

France Simmers In Its Own Juices, Germany Frets

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“We’re not doing this for the Greeks, but for us,” said Angela Merkel amidst a cacophony of doomsday scenarios. It’s all about propping up German banks and exporters. For the French, however, the European debt crisis doesn’t seem to exist.

Obama to EU: Get Your S__t Together; Got An Election Next Year

by Wolf Richter •  • Comments Off on Obama to EU: Get Your S__t Together; Got An Election Next Year

The White House is lobbying European governments to shut up and do something. No more disputes in public. No more disagreements over fundamental issues. The world is collapsing, and it’s time to act boldly. Hank Paulson’s extortion racket is back.

Bailout Rebellion in Germany Heats Up

by Wolf Richter •  • Comments Off on Bailout Rebellion in Germany Heats Up

Geithner gets smacked down, and Germany might be threatened by a populist movement to exit the E.U. For the first time ever, a clear majority of Germans no longer sees any benefits to being part of the Eurozone. And two-thirds reject aiding Greece and other heavily indebted countries.