Posted on 11/10/2011 8:50:44 AM PST by blam
AND NOW: People Are Starting To Flip Out Over France (Next)
Simone Foxman
Nov. 10, 2011, 11:10 AM
Image: Brian Jeffery Beggerly on Flickr
With all the agony dragging on in the eurozone, vultures are now circling around France.
The yield on French 10-year bonds over German bunds is shooting up, even as the premium Spain and Italy have to pay on borrowing sinks.
With high exposure to Italian sovereign debt and no access to European Central Bank resources to mitigate rising borrowing costs, France could be on a fast track to trouble.
While France is generally regarded as one of Europe's stronger economies, here are the reasons this strength is swiftly being undermined.
Click here to see why people are worried about France >
(Snip)
(Excerpt) Read more at businessinsider.com ...
Who has exposure to France’s debt when they default?
With so much money devoted to debt, where is the money for the economy?
Electronic Benefits Transfers.
...Gold drops and the Dow goes up 100+ points - that doesn’t make a lot of sense, unless you consider, maybe Bernanke and The Fed are ...
The premium on French borrowing is particularly worrisome because the European Central Bank cannot currently purchase French debt on the secondary market as it can PIIGS debt. But that's just one of many reasons people are starting to flip over France.
Check out the French-German bonds-bunds spread:
Wouldn’t it be funny if the PIIGS popped all at once, and a couple of surprise letters did too.
Iceland, Ireland, Spain, Portugal, Greece, Italy, and now France.
The money is probably in Belgium and Switzerland. Possibly also in Germany although they are highly exposed to France from what I’ve heard.
Sacre bleu! There goes the 35 hour workweek and 8 weeks of state-required vacation!
What next? Reirement age raised to 62?
oh the humanity, the humanity
I have been waiting for this shoe to drop.
Listening to the debate last night, every last one of our candidates siad Europe can handle this on their own...NO MORE BAILOUTS. The CNBC crew were practically imploring all them, even to the point of browbeating...Cramer...But you can’t just let this happen!!!!! Makes ya wonder what he’s got at stake.
Can’t figure out how oil keeps going up. Think it’s up 20% or so over the past month.
Iran.
As well they should. I’d give better than even odds they elect Dominique Strauss-Kahn as their President next go round on a promise to take their retirement age back down to 60.
All being coordinated by the One World Govt. puppetmasters.
Unless the fundamentals change then I would be a downgrade is inevitable.
Have you ever seen a video of a car going to fast start to go off the side of the road and the driver over corrects which sends the car out of control the other direction and the drive again over corrects until eventually it begins to flip end over end. That (in my opinion) is what is going on now.
Rather than allow market forces control the economies various groups have been “playing” with the economy for their own good.
While it is a simple thing to get your car under control if you are going at a slow speed, it is almost impossible once you really lose control.
Governments have lost control of their various economies.
I am not an economist but I do manage to balance my own check book each month, I don’t spend more than I earn, and I always put a way a little towards a rainy day. (Of course the fact that I have been responsible in my fiances is not going to help me when the entire world goes into a depression).
I have read somewhere that it is sometimes better to let up on the accelerator and keep only a loose grip on the steering wheel when a car begins to get into trouble and it will straighten itself out (or at least you will not cause it to flip over).
Perhaps if the various governments would step back and let the market do what it has to do, we will survive this. It is going to be bad, but I think it is going to be a whole lot worse if the various governments keep trying to “fix it”
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.