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THE MANIPULATION OF THE LIBOR
Translated from the French by Tim Gupwell
In my Friday morning video (in French), I said that when a pirate (Rupert Murdoch) does business with a ship wrecker (the City of London), it tends to weaken the entire system, and I went on to add that this is particularly the case when…
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THIS SYSTEM IS ITS OWN WORST ENEMY, by François Leclerc
Guest post. Translated from the French by Tim Gupwell
In the little game of who won and who lost, what conclusions can be drawn from the recent European council? Interpretations differ widely: some highlight the German Government’s about-turn, who themselves retort that the essence of their position has been preserved intact; others congratulate…
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THE WINDOWS MUST REMAIN CLOSED, by François Leclerc
Guest post. Translated from the French by Tim Gupwell
By rejecting the quartet’s plan, (which has, moreover, already been watered-down) before the summit has even been held, the German deputy foreign affairs minister, Michael Link has placed himself in the avant-garde of all those opposing any attempt at a compromise. The “iron chancellor’s”…
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“KANT WAS RIGHT!”
Translated from the French by Tim Gupwell
A female reader of my blog asked me to give her some tips for her upcoming business school exam. This is how I replied.
It seems important to me to focus on the possibility that any measures proposed can be generalized. It was Martin Wolf who…
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STICKING TO ONE’S PRINCIPLES…, by François Leclerc
Guest post. Translated from the French by Tim Gupwell
What was the plan being drawn up last week in Rome which Merkel refused to sign up to? The other three participants, Mario Monti, Mariano Rajoy and François Hollande advocated using the EFSF, and in the near future the ESM, directly, to bail-out the…
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TREASURE HUNT, by François Leclerc
Guest post. Translated from the French by Tim Gupwell
Following the clues for the next bail-out of the Spanish banks is proving to be a veritable treasure hunt. To participate, follow the guide!
Initially, the EFSF (European Financial Stability Facility) is going to borrow funds on the markets, using the member states guarantees,…
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France 24, “Is François Hollande’s fiscal program likely to hurt France’s competitiveness?”, at 7:10 PM, June 21st 2012
Don’t you love the way this is phrased? Can the guy ever recover from such an even-handed (cough! cough!) way of setting the issue?
Anyway, here it is.
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THE RETURN OF THE LENDERS OF LAST RESORT, by François Leclerc
Guest post. Translated from the French by Tim Gupwell
Here is a summary of the situation. Newly named Prime Minister, Antonis Samaras is continuing to put together a government which was voted in on the basis that it would renegotiate a bail-out plan which is falling apart anyway. In supporting him without sending…
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SPAIN: BOND MARKET THIS THURSDAY 21St JUNE
Spain managed to borrow 2.22 billion Euros this morning. It was hoping to raise 7.7 billion. The Wall Street Journal pointed out that this was “thanks to demand seen overwhelmingly coming from domestic banks”.
The coupon obtained by lenders for 2 years was 4.706% (compared with 2.069% on the 1st March); over…
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THE SPANISH RISK PREMIUM
There were two bond issues today, one in Spain, the other in Denmark, which allow us to carry out an interesting little calculation of the risk premium required of Spain when it borrows on the capital markets.
A short while ago the Spanish…
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Le Vif/L’Express, « There is ALWAYS an alternative », June 22, 2012
This is an exclusive preview – in English! – of my column which will be published in the Belgian weekly Le Vif/L’Express this coming Thursday
The phenomenon is the way in which things manifest themselves to us, and this can be real – either with things appearing as they really are; or it can be…
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FRANCE AND THE FUTURE OF EUROPE
France and the future of Europe
The fact that Spain seems to have lost all access to the capital markets for the foreseeable future, seeming thus, at first glance, to condemn the entire existence of the Eurozone, was headline news on Paul Jorion’s blog yesterday. Firstly, as discussed in the article ironically entitled “
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THE LOSS OF CONFIDENCE IN SPANISH DEBT: LIVE
In my article this morning ‘The Greeks have made the right choice’ I indicated that:
…the 10 year rate for Spanish bonds was 6.82% at opening time this morning and now stands at 7.13%. (10.25 AM).
The dramatic progression has continued: it is 2.40 PM and the rate is now at 7.22%
The correct…
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“THE GREEKS HAVE MADE THE RIGHT CHOICE!”
“The Greeks have made the right choice!”
Oh blast, the markets see it differently: the 10 year Spanish rate was at 6.82% at opening this morning and now it’s at 7.25% (3:30 PM). Unheard of, one has to say. Damned markets!
Voting for the Troïka method – it was pretty obvious – was voting…
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AND NOW?
14 juin 2012 par Paul Jorion
And now? What are we going to do? Now that Spain has lost access to capital markets for its debt?
True, the downgrading yesterday evening of Spain’s rating by three notches by Moody’s, from an A3 to Baa3 has not helped…
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SPAIN IN STORMY WATERS
12 juin 2012 par Paul Jorion
The 10 year rate for Spanish debt has just reached a historic high. On the 25th November of last year, the rate had beaten a record when it reached 6.72%. Yesterday early in the morning, when…
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HOW CREDIT DEFAULT SWAPS WILL HAVE DESTROYED THE EURO
How credit default swaps will have destroyed the Euro
12 juin 2012 par Paul Jorion
And what of the CDS (credit-default swap) speculators who don’t pay taxes? Why don’t we hear anything about them? We hear a lot about the Greeks not paying their taxes, and at…
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LE MONDE-ÉCONOMIE, Ordinary scandals, Monday 4 – Tuesday 5 June 2012
My most recent column in the French daily paper Le Monde : Les pigeons de facebook. Translated from the French by Tim Gupwell.
In the book which he dedicated to the 1929 Crash (*), John Kenneth Galbraith, made the remark that if everyone talks frequently of fraud during periods of crisis, it is not…