Eurozone debt crisis

Long, short, Bitcoin, forex - Plenty of alternate market disuccsion.
Post Reply
giulio2010
Posts: 962
Joined: Sun Sep 12, 2010 9:11 am

I have a question for the experts...
The Spanish banks have no liquidity but how is it possible that they are still finance expensive transfers for Barcelona and Real Madrid and pay their stratospheric salaries?
Top
User avatar
CaerMyrddin
Posts: 1271
Joined: Mon Sep 07, 2009 10:47 am

It is likely an important part of their revenues are coming from abroad?
Top
giulio2010
Posts: 962
Joined: Sun Sep 12, 2010 9:11 am

True...
Do you think if a business ask 100K loan to the bank, showing the possible return from abroad contracts, would the spanish bank lend that money? That's one of the main reason why businesses are closing down. Despite they have contracts with a secure return they struggle to be financed by the banks, but not the spanish league teams...
Top
User avatar
CaerMyrddin
Posts: 1271
Joined: Mon Sep 07, 2009 10:47 am

Football is a strange bussiness, that will have to shrink imho. Rationality is a strange concept in a world so dominated by passion...
Top
giulio2010
Posts: 962
Joined: Sun Sep 12, 2010 9:11 am

This comment deserve 1000 LIKE on facebook.
CaerMyrddin wrote:Football is a strange bussiness, that will have to shrink imho. Rationality is a strange concept in a world so dominated by passion...
Top
User avatar
jimrobo
Posts: 1290
Joined: Wed Mar 25, 2009 12:49 pm

short selling banned by the regulators in the spanish and italian stock markets.....crazy day of selling in every other market though!
Top
User avatar
Euler
Posts: 26223
Joined: Wed Nov 10, 2010 1:39 pm

I wonder what it will take for the EU leaders to finally take some unilateral action?
Top
User avatar
jimrobo
Posts: 1290
Joined: Wed Mar 25, 2009 12:49 pm

At this rate it could get really ugly very quickly.

Now the bond market is getting hammered. Theres no way spain can fund itself at these yields so whats it going to do?? Its going to need a full sovereign bailout!
Top
User avatar
superfrank
Posts: 2762
Joined: Fri Aug 14, 2009 8:28 pm

jimrobo wrote:At this rate it could get really ugly very quickly.

Now the bond market is getting hammered. Theres no way spain can fund itself at these yields so whats it going to do?? Its going to need a full sovereign bailout!
it was always going to be the case.

eventually half of Europe will need a full blown bailout to wipe their debts, whether they stay in or out of the Euro (if they come out they will still owe the money in Euros so devaluation won't change that).

i suspect that the money will eventually come in funny form... the ECB will clear the debts with printed money.
Top
User avatar
jimrobo
Posts: 1290
Joined: Wed Mar 25, 2009 12:49 pm

not without a political union. United states of europe!!
Top
Iron
Posts: 6793
Joined: Fri Dec 11, 2009 10:51 pm

Quite possibly.

I just hope that there is something in the USE's constitution to prevent future governments from borrowing recklessly...

Jeff
jimrobo wrote:not without a political union. United states of europe!!
Top
User avatar
jimrobo
Posts: 1290
Joined: Wed Mar 25, 2009 12:49 pm

I would doubt it!!!
Top
Iron
Posts: 6793
Joined: Fri Dec 11, 2009 10:51 pm

"What’s emerging is that Greece will probably not be able to fulfil its conditions. If Greece doesn’t fulfil those conditions, then there can be no more payments."

Philipp Roesler, German Vice Chancellor and Economy Minister
Top
mulberryhawk
Posts: 165
Joined: Thu Oct 29, 2009 12:37 am

When did the European governments borrow recklessly?
Top
Iron
Posts: 6793
Joined: Fri Dec 11, 2009 10:51 pm

Not sure I understand the question. Do you want specific dates, or are you questioning whether the likes of Greece and Ireland over-extended themselves?

Jeff
mulberryhawk wrote:When did the European governments borrow recklessly?
Top
Post Reply

Return to “Trading Financial markets”