Maybe an intermediary two-tier Europe would make it easier for policy makers to keep the EU ship afloat: C-Euro (core euro: Germany, The Netherlands, Austria, Finland, Luxemburg, possibly France and Belgium) and P-Euro (Peripheral Euro). That would make QE and depreciation a lot easier, but still complex, because Europe is a zone with many economic 'speeds' and folkloric institutions, also between countries in the South. But it can be done - the siesta in Spain has considerable less impact on business in Spain than it use to be.
See for further reading this blogger:
Happens to the best. I once didn't realize i had a buy order for 400 options that would wipe me out completely. I was lucky the market took another turn so i could cancel it. As to this market: the bounce has a high fluff factor. For once politicians need to work instead of talk, but i'm afraid EU idealism gets a rough reality check.
If you want to know about the 'value' of ING you should deep into their non-bond related exposure to Spain and know something about residential mortgage-backed securities (RMBS).
Noticed too? The first to default is the one that will be fleeced. The vulture capitalist are trying to profit from the misery of others.
Looks like the EURO project must do a step back. No reason for panick imo.
EURO (esp. France) has a problem when Greece defaults. All other Northern countries (banks) are safe, maybe they should work out on plan B.
Subsidizing the producer is bad, so is subsidizing the consument. Imbalances, created by cheap money are too big for politicians to solve in a few yrs.
There's an asset bubble out there (going back to 1995), assets that still have a rosy live on the balance sheets of most banks. RBC took a major haircut the other day. ING is still holding assets that should probably be depreciated. They keep mum about it, of course nobody knows what will happen in the short term. But a 2% asset devaluation to fold up.
I think ING is cheaper than most US banks. BAC is bankrupt, and should be delisted.
where the price will be when we get the next leg down. Of course everything above the previous low $4 may be risky coming weeks. Not to mention the dilution we have had.
Barosso is becoming a stock character with his perpetual optimistic 'no-recession' message.
When is ING a LT buy? A full implementation of Basel III would be a show of strength and signal a LT buy signal for me. Pahasing the rules until 2019 was a big marketing mistake for the banks. It shows weakness and uncertainty:
between bad stroke or good strike:
"Still, he wrote, the positive trend and statistical significance achieved on the secondary goal wasn't a clear negative for Crestor. Holford added that the arrival of generic Lipitor will likely continue Crestor's trend of slow U.S. prescription growth."
Significant or not, Crestor is better than Lipitor. Why take the risk if you can afford the price of a patent.
Let me phrase it in simple terms: The problem going forward is that the economic growth doesn't justify the proportion of leverage the banks have. That's the problem.
Banks will be nationalized. I'm in/out of this stock now.
Societé General has a leveraged of 50! The world is slowly waking up to the fact that these banks have an insane business model.
America's decline in home ownership is symbolic of a larger erosion in living standards, which Americans have met in two ways. The first is that America has gone deeply into debt to maintain its lifestyle. The second is that families have been able to hold ground only because wives have joined their husbands in the work force.
"And the US is much richer than Europe in South and east Europe living only poor people."
Do I need to search further?
I doubt it, they would rather throw out Greece and Portugal. The truth is that the EU has less problems than the US. If the throw out Greece and Portugal some EU bank stocks would rally 25%.
Don't forget the US had QE1 and QE2. The ECB hasn't started yet due to political disagreement.
The AEX closed under 300. See capitulation selling next week. I hope that it stays above 5.70 euros. Taken small position yesterday at $9. Intend to buy more next week.
I agree, ING is almost as safe as a Swiss bank. Too bad there's a paradigm shift in the economy. Two years ago everyone knew that a transformation to a credit economy was the recipe to avoid another debt default recession.
Instead we got more and more debt and the same old mantra: 'let's grow the economy' or the economy will pick up' accompanied by the same old politician show.
Banks should take their responsibility, as I see they do, to survive. Politicians are the play ball of the markets but bankers should be wiser.
Hmm, I cut and paste it a few months ago.