The discussions on who will be in the Greek coalition government still continue, though really it’s less of a question of who will be in, and more of a question of what conditions the minor parties, PASOK and the Democratic Left, will try and set for the new government as regards renegotiating the bailout. Of course they don’t really have much leverage for negotiation, as almost regardless of what happens, Greece will need yet another round of bailout financing.
In other words, no matter how it goes, the ordinary Greeks are screwed. This will certainly be good news for the fascists and their supporters.
On the plus side, the Greek soccer match against Germany is the 22nd. Just a good-natured rivalry, that’s all…
Meanwhile people still don’t really understand what’s up with Britain’s “funding for lending” plan… does this mean that the Bank of England’s QE programs weren’t funding for bank lending?
In Mexico, the G20 summit proved an excellent opportunity for everyone to yell at Europe to get on with it. And for Europe to yell back that it’s all the fault of the American banks. But as the day waned rumors started to fly that once again there was a grand plan to spend more money on peripheral European debt:
FT Alphaville: Exclusive to all newspapers, EFSF/ESM bond-buying
Telegraph: Debt crisis: EU leaders set to announce 750bn Spain and Italy bailout deal
Guardian: Germany set to allow eurozone bailout fund to buy troubled countries’ debt
I could have sworn we’ve been here before. Rampant rumors that Europe is prepared to spend German money, followed by Germany going “wait, what?”, followed by some half-baked compromise nonsense that just makes everything worse.
Every day is a good day for a rumor that Germany is okay with German money being spent to prop up Spanish and Italian bankers’ bonuses. Maybe one day those rumors will actually turn out to be true. It could happen!
Meanwhile Spain is still on fire. Last year when it was Italy’s turn in the broiler, the description used was “when bill (short term bond) yields go, it’s getting close to the end”. Spain’s high yields on longer term debt are beginning to infect durations as short as one year, which was supposed to be covered by the long-term refinancing operation. But don’t worry, Spain has delayed the full results from their banking audit until September. …no, wait, actually, worry. Something will certainly change in the near future to resolve this situation, admittedly one of those possible things is a Spanish euro exit…
Of course, Italy may not be too long out of the broiler, as an anti-euro party has taken up to 20% of the vote in some areas, despite, or perhaps because of, being run by a former comedian.
The parting word, or 4000 words, is from the Athens News, spotted by the Financial Times: Live news blog, June 19 | Athens News. Their 9:45am entry is a series of pictures of the party leaders meeting each other. The body language speaks volumes. We’re talking serious trilogy material here, hardbound, with forwards by the author and detailed appendixes. The deluxe edition with a fold-out poster map of the world. It’s pretty awesome is what I’m getting at.
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