By Lorenzo Totaro and Jeffrey Donovan - Jul 13, 2011 6:56 AM ET .
Governor of the Bank of Italy Mario Draghi addresses business leaders at an
July 13 (Bloomberg) -- Mario Draghi, governor of the Bank of Italy and incoming president of the European Central Bank, discusses the European debt crisis. He spoke today at a conference in Rome. (This report is an excerpt. Source: Bloomberg)
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Europe’s debt crisis has entered a new phase and policy makers must come up with a “clear” response to stop the contagion that threatens the region’s single currency, said the European Central Bank’s incoming President Mario Draghi.
“It’s now necessary for those trying to manage the sovereign crisis to give certainty, to define with clarity the political objectives, the scope of the instruments and the amount of resources available,” Draghi said today in a speech in Rome. “It’s a necessary step to ensure the stability of the euro area and its currency.”
European governments can no longer count on their financing costs remaining similar to those of Germany, the region’s strongest economy, simply because of their participation in the single currency, he said.
“The solvency of the sovereign states is no longer something acquired he said, but something earned with high and sustainable growth, which is only possible if budgets are in order,” Draghi, who also heads the Bank of Italy said. “Today’s cost of credit reflects that new reality.”
Draghi’s comments at the annual meeting of Italy’s banking association came after Italian bonds and stocks plunged in recent days on concern the country would struggle to reduce the euro-region’s second-biggest debt. The yield on Italy’s 10-year bond reached the highest since 1997 and financing costs at a sale of treasury bills surged on investor concern that Italy would be the next victim of the region’s debt crisis.
Bonds Gain
Italian bonds gained today on pledges by the government for swift passage of a 40 billion-euro ($64 billion) deficit- reduction plan that seeks to balance the budget in 2014. The premium investors demand to hold Italy’s 10-year bond over German bunds fell 17 basis points to 269.3, down from a euro-era record of 348 reached during trading yesterday.
Italian Finance Minister Giulio Tremonti, speaking at the same conference, said the plan would be passed by both houses of parliament by July 15. Opposition parties have agreed to ease passage of the measure in the legislature.
“Italian politicians decided to respond firmly to market concerns over the credibility and implementation of the 40 billion-euro fiscal package,” Fabio Fois, European economist at Barclays Capital in London said in a note to investors. “These are clearly positive developments. The fiscal plan was originally supposed to be voted on at the beginning of August.”
Asset Sales
The deficit plan is “an important step in strengthening the public accounts” that will help reduce the debt, Draghi said. He also called on the government to explain details of additional measures for 2014 that will be needed to achieve the balanced budget.
Tremonti did say the government was considering a plan to sell off more state-owned assets “once the crisis passes.”
Austerity measures won’t be enough for Italy and other euro-region countries to reduce debt if not accompanied by policies to boost economic growth, Draghi said. The Bank of Italy expects Italian growth to continue to lag behind the euro area average for the next two years, he said. Second-quarter growth did expand at a similar pace as that of the euro region, Draghi said, reversing the trend in the first three month when Italy grew 0.1 percent, a fraction of the 0.8 percent rate for the euro area.
In contrast to many European economies, Italy has the advantage of a solid banking system and a declining jobless rate, Draghi said.
Italian lenders will pass stress tests this week with a “significant” margin of capital above the core Tier 1 minimum, he said. He estimated the lenders still need to boost capital by 20 billion euros to meet Basel 3 standards for 2019, he said.
To contact the reporter on this story: Lorenzo Totaro in Rome at ltotaro@bloomberg.net. Jeffrey Donovan at jdonovan26@bloomberg.net
To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net
Wednesday, July 13, 2011
Defaulted Greece May Have to Aid Trichet to Save Face as ECB Stands Firm
July 13 (Bloomberg) -- Simon Derrick, chief currency strategist at Bank of New York Mellon Corp., talks about the outlook for the European Central Bank monetary policy, the euro and the European debt crisis. Derrick also discussed the outlook for Nordic currencies and the Japanese yen. He spoke yesterday with Bloomberg's Oliver Joy in London. (Source: Bloomberg)
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European Central Bank President Jean-Claude Trichet might need to rely on Greece for assistance if the nation defaults.
Trichet’s threat to refuse defaulted Greek bonds as bank collateral for ECB liquidity remains in force after European finance ministers failed to agree on measures to stem the region’s debt crisis. In a default, Greek lenders could instead get Emergency Liquidity Assistance, a short-term loan program by national central banks in use in Ireland, said economists at Deutsche Bank AG, Barclays Capital and BNP Paribas SA.
That would leave the Greek central bank to firefight a banking crisis that Trichet has staked the ECB’s credibility on keeping clear of. The danger of such an event has gained credence as persistent speculation on the prospect of Greece defaulting transformed into regional contagion that sent bond yields soaring and stocks plunging from Portugal to Italy.
Emergency liquidity “would save Trichet’s face, at least in the short term,” said Gilles Moec, co-chief European economist at Deutsche Bank in London. “It’s relatively painless for the banks as they can just replace old collateral with new that will be accepted by the Greek central bank. The ECB can then stick to its guns.”
ECB Governing Council member Jens Weidmann from Germany told Die Zeit newspaper in an interview published today that “a red line had to be drawn” to protect the central bank from having its credibility undermined. “It’s not our job to finance insolvent banks, never mind countries” which is “why the Eurosystem only lends money against adequate collateral,” he was cited as saying.
Funding Source
The ECB is the main source of finance for Greek banks, which borrowed 97.5 billion euros ($136 billion) in May, up from 86.8 billion euros the previous month. The institution last year suspended the minimum credit-rating threshold for Greece’s bonds after its banks were shut out of credit markets. Lenders can now borrow as much as they need for up to three months against collateral determined at the central bank’s discretion.
ECB officials have insisted tougher austerity measures are the only way out of Greece’s debt quagmire, conflicting with a German-led bloc of finance ministers that sought to inflict part of the burden of a second bailout onto investors. At a July 7 press conference, Trichet repeatedly said that “we say no to selective default or credit event” as he faced a barrage of questions on whether the ECB would stick to its approach.
Rating Threat
Ratings companies including Standard & Poor’s and Fitch Ratings have said Greece would be at least temporarily and partially rated in default if plans where implemented under which creditors would roll over bonds maturing until 2014.
Using liquidity assistance, banks could pledge “non- traditional ECB collateral such as mortgage loans, small-and- medium size company loans or shipping loans” to the Greek central bank in exchange for liquidity, said Laurent Fransolet, head of European Fixed Income Strategy at Barclays Capital in London. At the end of May, Greeks banks had 78.9 billion euros in household loans.
The program is very much run at the central bank’s discretion, “making it very flexible but also intransparent” leading to “concerns over the Greek central bank’s balance sheet,” Fransolet said.
The liquidity the central bank lends, which in the Greek case would likely exceed the central bank’s capital base of 1.7 billion euros, is created by expanding the bank’s balance sheet.
‘Printing Money’
“It’s in effect printing money,” said Nick Matthews, an economist at Royal Bank of Scotland Group Plc in London. ‘it’s all a bit off the radar but in practice ELA could be financed by the central bank creating deposits or could also potentially be financed by selling other assets.”
In May, the Greek parliament passed legislation permitting the Ministry of Finance to guarantee the Greek central bank’s financial exposure stemming from support provided to credit institutions. That suggests the central bank was readying itself to step into the breach. A spokesman declined to comment on the matter yesterday.
While emergency liquidity is supposed to be provided in exceptional circumstances on a case-by-case basis to “temporarily illiquid but solvent institutions,” Irish banks have received about 50 billion euros in that so far, according to estimates in a Barclays Capital report on July 5.
Europe’s finance ministers failed to come up with a plan to contain the crisis at a two-day meeting in Brussels on July 11 and 12. That roiled financial markets, wiping $1 trillion off the value of global equities, sending 10-year Italian yields to a 14-year high and pushing the euro to a four-month low.
Bond Market
Irish bonds dropped for a sixth day today after Moody’s Investors Services cut the country’s credit rating to below investment grade last night. The 10-year yields increased 43 basis points to a euro-era record 13.78 percent as of 12:49 p.m. in London. The nation’s two-year note also slid, raising yields by 92 basis points to 18.65. They reached a record 18.68 percent earlier.
Italian 10-year bonds rose, pushing yields down 8 basis points to 5.48 percent, while yields on equivalent-maturity Spanish debt fell 10 basis points to 5.75 percent. Greece’s 10- year bonds fell, pushing the yield up eight basis points to 16.86 percent.
Using ELA for Greek banks is “feasible but this issue is turning into a side show now, the issue has gotten so much bigger,” said Ken Wattret, chief euro-area economist at BNP Paribas in London. “While one can have sympathy for the ECB’s position, it adds to the alarm in markets as political decisions take so much longer.”
To contact the reporters on this story: Gabi Thesing in London at gthesing@bloomberg.net;
To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net
©2011 BLOOMBERG L.P. ALL RIGHTS RESERVED.
.
European Central Bank President Jean-Claude Trichet might need to rely on Greece for assistance if the nation defaults.
Trichet’s threat to refuse defaulted Greek bonds as bank collateral for ECB liquidity remains in force after European finance ministers failed to agree on measures to stem the region’s debt crisis. In a default, Greek lenders could instead get Emergency Liquidity Assistance, a short-term loan program by national central banks in use in Ireland, said economists at Deutsche Bank AG, Barclays Capital and BNP Paribas SA.
That would leave the Greek central bank to firefight a banking crisis that Trichet has staked the ECB’s credibility on keeping clear of. The danger of such an event has gained credence as persistent speculation on the prospect of Greece defaulting transformed into regional contagion that sent bond yields soaring and stocks plunging from Portugal to Italy.
Emergency liquidity “would save Trichet’s face, at least in the short term,” said Gilles Moec, co-chief European economist at Deutsche Bank in London. “It’s relatively painless for the banks as they can just replace old collateral with new that will be accepted by the Greek central bank. The ECB can then stick to its guns.”
ECB Governing Council member Jens Weidmann from Germany told Die Zeit newspaper in an interview published today that “a red line had to be drawn” to protect the central bank from having its credibility undermined. “It’s not our job to finance insolvent banks, never mind countries” which is “why the Eurosystem only lends money against adequate collateral,” he was cited as saying.
Funding Source
The ECB is the main source of finance for Greek banks, which borrowed 97.5 billion euros ($136 billion) in May, up from 86.8 billion euros the previous month. The institution last year suspended the minimum credit-rating threshold for Greece’s bonds after its banks were shut out of credit markets. Lenders can now borrow as much as they need for up to three months against collateral determined at the central bank’s discretion.
ECB officials have insisted tougher austerity measures are the only way out of Greece’s debt quagmire, conflicting with a German-led bloc of finance ministers that sought to inflict part of the burden of a second bailout onto investors. At a July 7 press conference, Trichet repeatedly said that “we say no to selective default or credit event” as he faced a barrage of questions on whether the ECB would stick to its approach.
Rating Threat
Ratings companies including Standard & Poor’s and Fitch Ratings have said Greece would be at least temporarily and partially rated in default if plans where implemented under which creditors would roll over bonds maturing until 2014.
Using liquidity assistance, banks could pledge “non- traditional ECB collateral such as mortgage loans, small-and- medium size company loans or shipping loans” to the Greek central bank in exchange for liquidity, said Laurent Fransolet, head of European Fixed Income Strategy at Barclays Capital in London. At the end of May, Greeks banks had 78.9 billion euros in household loans.
The program is very much run at the central bank’s discretion, “making it very flexible but also intransparent” leading to “concerns over the Greek central bank’s balance sheet,” Fransolet said.
The liquidity the central bank lends, which in the Greek case would likely exceed the central bank’s capital base of 1.7 billion euros, is created by expanding the bank’s balance sheet.
‘Printing Money’
“It’s in effect printing money,” said Nick Matthews, an economist at Royal Bank of Scotland Group Plc in London. ‘it’s all a bit off the radar but in practice ELA could be financed by the central bank creating deposits or could also potentially be financed by selling other assets.”
In May, the Greek parliament passed legislation permitting the Ministry of Finance to guarantee the Greek central bank’s financial exposure stemming from support provided to credit institutions. That suggests the central bank was readying itself to step into the breach. A spokesman declined to comment on the matter yesterday.
While emergency liquidity is supposed to be provided in exceptional circumstances on a case-by-case basis to “temporarily illiquid but solvent institutions,” Irish banks have received about 50 billion euros in that so far, according to estimates in a Barclays Capital report on July 5.
Europe’s finance ministers failed to come up with a plan to contain the crisis at a two-day meeting in Brussels on July 11 and 12. That roiled financial markets, wiping $1 trillion off the value of global equities, sending 10-year Italian yields to a 14-year high and pushing the euro to a four-month low.
Bond Market
Irish bonds dropped for a sixth day today after Moody’s Investors Services cut the country’s credit rating to below investment grade last night. The 10-year yields increased 43 basis points to a euro-era record 13.78 percent as of 12:49 p.m. in London. The nation’s two-year note also slid, raising yields by 92 basis points to 18.65. They reached a record 18.68 percent earlier.
Italian 10-year bonds rose, pushing yields down 8 basis points to 5.48 percent, while yields on equivalent-maturity Spanish debt fell 10 basis points to 5.75 percent. Greece’s 10- year bonds fell, pushing the yield up eight basis points to 16.86 percent.
Using ELA for Greek banks is “feasible but this issue is turning into a side show now, the issue has gotten so much bigger,” said Ken Wattret, chief euro-area economist at BNP Paribas in London. “While one can have sympathy for the ECB’s position, it adds to the alarm in markets as political decisions take so much longer.”
To contact the reporters on this story: Gabi Thesing in London at gthesing@bloomberg.net;
To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net
©2011 BLOOMBERG L.P. ALL RIGHTS RESERVED.
Monday, July 11, 2011
The American People need to Step UP
I am sick and tried of the games Congress is playing with everyday American lives. Are You tried of the rhetoric that's going on? Look we are in debt everybody knows this. America has to pay it's bills everybody knows this. Then why is it such a hard thing to raise the debt ceiling? This is something we have to do, this is something we must do. Come on Congress we are tried of circling this same mountain. Lets get it done, raise taxes because we know America needs revenue. Tell businesses to get up off the money and hire people. Bring back the old tax credit to companies that hire minorities and lets begin the healing process. We have been here before in an economical crisis and we got to work and solve the problem. What's so different now? What is Congress afraid of? That thing may start to get better with a Democrat President at the helm. The American people need ACTION and we ain't getting it from our government. The American People need to Step Up and let our government know that we are tried of this and that we need to move ON.
Can"t Find Gay Gene
The song "I Was Born this Way,by Lady GAGA" pretty much sum up the way I feel about my sexuality. I as far as I can remember back I have always been attracted to girls as my sexual preference and admired boys. Now as far as where did my gay gene go or where is the marker I don't know. However, where is the straight gene or marker? Have science found that marker? I would suppose where the straight gene is found. That's where the gay gene will be found. May be our sexual taste is not something that is important enough to have a spot on the DNA ladder. Yes, we are born either male are female in our physical appearance, but our genital does not dictate what sexual partner we crave. There is something else that control whom we have sex with. So until science find the straight as well as the gay gene I believe we can all sing together "I Was Born this Way".
Friday, July 1, 2011
Full Moon Names
Full Moon Names
Moon and AldebaranLining up a lot of moonlightSunday, December 19, 2010
Hunter's MoonHunting up some extra moonlightFriday, October 22, 2010
Harvest MoonA beautiful astronomical coincidenceWednesday, September 22, 2010
Moon and GeminiMoonlight for New Year's EveThursday, December 31, 2009
Blue MoonA once-in-a-blue-moon eventWednesday, December 30, 2009
Hunter's MoonHunting up some beautiful moonlightMonday, November 2, 2009
Harvest MoonThe most popular full Moon is a little out of...Saturday, October 3, 2009
Apollo MoonA journey to an ancient lava plainMonday, July 6, 2009
Hunter's MoonHunting up a popular full MoonTuesday, October 14, 2008
Harvest MoonHarvesting some extra moonlightSunday, September 14, 2008
Wolf MoonA forlorn Moon for a winter’s nightTuesday, February 19, 2008
Hunter's MoonFollowing the cycles of the MoonThursday, October 25, 2007
Blue Moon and CompanionsCompanionship for a "blue" MoonThursday, May 31, 2007
Harvest MoonGetting ready for the Harvest MoonFriday, October 6, 2006
In StarDate Magazine
Sky Almanac (Jan/Feb 2011)
StarDate: May/June 2010
StarDate: Jan/Feb 2009
Moon and AldebaranLining up a lot of moonlightSunday, December 19, 2010
Hunter's MoonHunting up some extra moonlightFriday, October 22, 2010
Harvest MoonA beautiful astronomical coincidenceWednesday, September 22, 2010
Moon and GeminiMoonlight for New Year's EveThursday, December 31, 2009
Blue MoonA once-in-a-blue-moon eventWednesday, December 30, 2009
Hunter's MoonHunting up some beautiful moonlightMonday, November 2, 2009
Harvest MoonThe most popular full Moon is a little out of...Saturday, October 3, 2009
Apollo MoonA journey to an ancient lava plainMonday, July 6, 2009
Hunter's MoonHunting up a popular full MoonTuesday, October 14, 2008
Harvest MoonHarvesting some extra moonlightSunday, September 14, 2008
Wolf MoonA forlorn Moon for a winter’s nightTuesday, February 19, 2008
Hunter's MoonFollowing the cycles of the MoonThursday, October 25, 2007
Blue Moon and CompanionsCompanionship for a "blue" MoonThursday, May 31, 2007
Harvest MoonGetting ready for the Harvest MoonFriday, October 6, 2006
In StarDate Magazine
Sky Almanac (Jan/Feb 2011)
StarDate: May/June 2010
StarDate: Jan/Feb 2009
Thursday, June 30, 2011
Paranoia Sells
While listening to a talk radio show it hit me that all these people (conservative radio and tv host)are spreading paranoia, " Oh my someone is out to get me,oooo)and most of the time their audiences are well off or out in the back woods. That's an interesting mix of people one has everything to lose and the other has nothing to lose yet they both are the most paranoid. I can understand why the well off my be a little paranoid they do have some bling but the back woods folk what are they paranoid about? Oh yeah,the white family and it's future for their kids. These people have nothing to be afraid of nor have anything to hate WE ARE ALL BROKE,we all worried about our families and the future for our children.
So why are these people believing so much what this conservative radio and tv host are saying. All they do is feed fear and fuel fires and try to kept us sparated and get richer by the minute. These people get paid well to spread fear. Imagine what could happen if the conservative fearmongers where put out of business. There would be unity among the people, because the fear reepers will be gone and where there is unity their is strenght.
Also, the paraniod want their guns, I'm all for the right to bear arms but does one have to have so many? I saw a documentry on gun control and the paraniods at the gun shows. These people have arsenals at home. Now is that really nessary? I can see a shotgun and a handgun,however, one can only use one gun at a time. Paranoia sells guns.
Our Country has never been so divided since the civil war. Why is our country so divided? Why are hate groups on the rise? Why are unemployment rate higher among Blacks? Why is Socail Sercurty and Medicare so harmful now? Why are poor people being left behind? Why Why Why I ask myself and the single most cause I can think of is Paranoia.
What can we do about paranioa amongst people pray. The Bible say,"The Lord will bee your confidence and will keep your foot from being snared." Pvb.3:26
We yell this is a Christian country, yet we hate and have not love for one another.
So why are these people believing so much what this conservative radio and tv host are saying. All they do is feed fear and fuel fires and try to kept us sparated and get richer by the minute. These people get paid well to spread fear. Imagine what could happen if the conservative fearmongers where put out of business. There would be unity among the people, because the fear reepers will be gone and where there is unity their is strenght.
Also, the paraniod want their guns, I'm all for the right to bear arms but does one have to have so many? I saw a documentry on gun control and the paraniods at the gun shows. These people have arsenals at home. Now is that really nessary? I can see a shotgun and a handgun,however, one can only use one gun at a time. Paranoia sells guns.
Our Country has never been so divided since the civil war. Why is our country so divided? Why are hate groups on the rise? Why are unemployment rate higher among Blacks? Why is Socail Sercurty and Medicare so harmful now? Why are poor people being left behind? Why Why Why I ask myself and the single most cause I can think of is Paranoia.
What can we do about paranioa amongst people pray. The Bible say,"The Lord will bee your confidence and will keep your foot from being snared." Pvb.3:26
We yell this is a Christian country, yet we hate and have not love for one another.
Friday, June 17, 2011
When is Your Child Grownup?
When can a parent really tell when a child has grown Up? Is it when they reach 18, 19 or 20 (age is nothing but a number)? Are is it when they are at the rebellious age "I'm not a kid anymore!"? At any rate a parent doesn't have a clue as to when there child is an adult. Just like the Mother doesn't know when the baby is coming (well we do now and that's another story for another time) until the moment the water breaks, then its get to the hospital. A parents knowledge of when the child is an adult elude them. There must be some kind of natural event like the water breaking announcing the arrival of the baby.
Some children are born knowing their adult self for ex. a baby is place in front of a piano and begins to play, a child knowing how numbers work, or to paint a picture. For some of us it would take a life time to achieve,yet they know. Most people believe this is being born with a talent I believe it is being born with the adult self. These children, parents most be in tune with their little genus.
When I was a child my first acknowledgement of my adult self was knowing the greater spirit in me God. I had many experiences with God before I could read. So when I learn to read the first book I was give was The Bible Story book. Also I have a love for words so I was writing poems. My Mother never notice so one got away from Me.
Other children know when they are adult by stages. These children know they go to school, they find a job or go to college and then find a job, find a partner get married, have or not have children go on vacation, and work until they retire. That account for most children. Generally this is what ALL Parents expect from their Adult children.
Then You have the rebels. The ones that I feel have a hard time with the adult change. Even though they yell, "I'm not a kid anymore" they are not. They don't know when their biological clock went off but they know it did and have a hard time with change. So teach them breathing techniques.
Puberty we all go through, but each one is unique as each child is unique. We all have some problems in becoming adults so the best thing a parent can do for their child is teach them how to breathe early in life. The other thing is teach them how to love the child within.
By Latrall Simon
June17,2011
Some children are born knowing their adult self for ex. a baby is place in front of a piano and begins to play, a child knowing how numbers work, or to paint a picture. For some of us it would take a life time to achieve,yet they know. Most people believe this is being born with a talent I believe it is being born with the adult self. These children, parents most be in tune with their little genus.
When I was a child my first acknowledgement of my adult self was knowing the greater spirit in me God. I had many experiences with God before I could read. So when I learn to read the first book I was give was The Bible Story book. Also I have a love for words so I was writing poems. My Mother never notice so one got away from Me.
Other children know when they are adult by stages. These children know they go to school, they find a job or go to college and then find a job, find a partner get married, have or not have children go on vacation, and work until they retire. That account for most children. Generally this is what ALL Parents expect from their Adult children.
Then You have the rebels. The ones that I feel have a hard time with the adult change. Even though they yell, "I'm not a kid anymore" they are not. They don't know when their biological clock went off but they know it did and have a hard time with change. So teach them breathing techniques.
Puberty we all go through, but each one is unique as each child is unique. We all have some problems in becoming adults so the best thing a parent can do for their child is teach them how to breathe early in life. The other thing is teach them how to love the child within.
By Latrall Simon
June17,2011
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