Earlier in the day I mentioned how the UK is likely (now definitely) not going to provide the $30.9 bn in aid to the IMF so the IMF can turn around and bailout the very same countries providing the aid, but if that were not surreal enough, get this...
Italy is probably the one PIIGS that can bring the entire system down, they have huge debt they need to rollover and can't seem to do that without paying an unsustainable 6-7% on 10-year BTPs, translation, Italy needs a bailout.
We already knew that Germany was providing the most to the IMF, $41.5 bn and France, which should be downgraded any minute now is providing $31.4 bn, the UK for the second time since December 9th has given the EU the shaft and won't commit to the $30.9 bn in IMF aid which is desperately needed to bail out Italy, but what we didn't know until now is that Italy will be contributing $23.5 bn in IMF aid to bail out Italy!!!
Since the day the EU had the first Sunday summit after the G-20 gave them an ultimatum, it has been an absolute circus and thus anyone and everyone who was committed to helping (mainly China and the other BRICS) is now running for their lives away from any bail out as each summit, each press conference does nothing more then to revel how absolutely inept the EU policy makers are.
I have long thought, "They know something we don't and that is why this looks ridiculous, but they have something up their sleeve", each time I have been proven wrong for giving these policy makers the benefit of the doubt; but how in the world can one give them the benefit of the doubt when Italy is now contributing $23.5 bn to its own bail out?
Seriously, I feel like I'm missing something here, can they be that inept? Credit and now the formerly sugar rush addicted market seem to agree, "Yes, they really are that inept".
Don't be surprised to hear that Germany has been put on negative credit watch just for advocating and participating in something this.... (you fill in the adjective).
5 years ago
No comments:
Post a Comment