- Central Banks are struggling.
Link: the limit of their ability.
That’s according to the Bank of International Settlements, with the following pithy statement:
“Central Banks are being cornered into prolonging monetary stimulus as governments drag their feet and adjustment is delayed. Both conventionally and unconventionally accommodative monetary policies are palliatives and have their limits”.
This is code for “y’all need to calm down”. And/or “you can’t lower interest rates below zero”. And/or “you can’t legitimately buy any more debt”.
- Tropical storm forms in the Gulf of Mexico.
Tropical Storm Debby. About 10% of production has been suspended thus far.
- Greece seeks 2 year extension.
Link: the bailout renegotiation.
The new coalition’s policy is to try push creditors out on fiscal deadlines. And to avoid cutting 150,000 public sector jobs.
When you read through the revised measures that are being proposed, you have to wonder how much of the plan is based on delusion. Despite the unpopularity, one of the biggest burdens on the Greek State are pensions. And that burden is only set to grow.
They have to be cut. The alternative is a bankrupt government which actually can’t pay anything.
Surely something is better than nothing?
- Larry Page says he’s fine.
It seems that Larry has lost his voice. As announced by CEO Eric Schmidt.
The concern is that he won’t be speaking for the next few weeks. Missing a day is fine – but saying that you won’t be able to meet with shareholders for this and the next two public meetings sounds more serious.
- Bundesbank criticises Draghi.
Link: “We’re critical of this”.
In response to the Spanish request for help, the ECB is reducing ratings thresholds and amending “eligibility requirements for some asset-backed securities”. Translation: the ECB is preparing to take riskier debt onto its balance sheet.
The Germans are not happy. But that’s come to be expected.
- Euro leaders agree on already-agreed upon measures.
Link: the four-way summit.
Germany, Spain, France and Italy have agreed on an outline agreement on economic growth.
Thus far – it still seems to be an agreement to come up with an agreement. But no debt-sharing. So not really news at all.
- Muslim Brotherhood wins Egypt.
The theory is that the election outcome will bring some temporary stability to the Middle East. The real question is whether the military will hand over rule to Mr Mursi, after the defeat of their candidate.
- London Olympics – breaking the budget.
The University of Oxford has just conducted a study on the cost of the games – and it seems that the games will go over budget by 100%.
Nothing like Olympic Games in the middle of a recession.