355. Europe Crisis Summary - Updated 2/9/2012

+/- 3/2012: Short-Term: Plan to discuss EFSF and ESM fund status (Reinforcement of rules questioned)

-/+ 2/9/12: Greece promises more austerity  for future loans
--/+  2/2/12: Europe shows its pain, but China may smell bottom
-/+ 2/2/12: Greece PM caught between rock and hard place over austerity
--- 1/30/12: Portugal BLEEDING - 20%+ 20-yr bonds and 17%+ 10-year
--- 1/29/12: Germany says let the EU manage Greece budget (post #420)
--- 1/28/12: Greece still evades debt writedowns (Bond holders looking at 70% haircut)
+ 1/28/12: France still shoooting for < 4.7% GDP Decifit (2010 was 7%, 2011 about 5.7%)
---/+ 1/8/12: See article for :

• Spain and Italy due to pay back big debt and will go to bond auction this week for funds (good luck)
• Sarkozy and Merkel schemes
• Sarkozy wanting to tax financial transactions ... will in France ... wants for all EU ... [France is getting in line for world of hurt after Iceland, Portugal, Greece, Spain, Italy, Belgium]
• Another chit chat to DISCUSS and not find solutions for overall EU jobs amidst increasing austerity measures
• More about Reinforcement rules (see 3/2012 plans)

- 1/8/12: Czech central bank governor rebells against supporting Greece
---- 1/4/12: Short&Long-Term: Greece is a SICK PUPPY and worse than a beggar on the street
-/+ 12/28: ECBs holding on to large amounts of Euros instead of loaning to banks (could just be the 3-yr Euros coming in.
++12/27: Short-Term: Italy sold its 3mo. and 6 mo. bonds at auction at 1/2 yield of last mo. WHY when risk is so high?
+ 3/20: Short-Term: Our markets liked the 3-year $$ made available to banks in Europe
+++ Week of 12/19: Short-Term: Banks to be given opportunity to borrow up 3 years of $$
- 12/19: UK declines to participate in IMF funding, as does Germany and US
+ 12/19: Both: Plan to review amendment draft and specific individual bilateral IMF borrowing
---12/18: Short-Term: Fitch could downgrade Italy, Spain, plus 4 others shortly and France in 2 years
-- 12/18: Amendment details discussed already falling apart, particularly outside of EBD participation in IMF funding
-/+ 12/18: Short-Term: Euro Zone to give IMF (Questionable who will fund) more $$ AND Long-term LIQUIDITY to BANKS; May NOT be enough for Italy/Spain problems
-- 12/16: Immediate: Fitch downgraded Belgium to Aa1 from Aa3
++ 12/09: Longer-Term: Agreed to write amendment to constitution for BALANCED BUDGET and automatic actions if not accomplished. Expectations are sharply lower gov't borrowing and reduction of debt; BUT take ONE YEAR!
+/- November 2011: Short-Term: ECB buying of Italy and Spain bond PROBABLY being done (unknown for sure and most expensive route)
+/- November 2011: Short-term: $20B/week ECB Bond buying to provide liquidity, BUT may cause politicians to ease reforms and may be illegal
+/- October 2011: Short-term: Banks asked to take 50% loss on Greek bonds