Austerity's Future Unclear In Wake of Eurozone Elections

[Parsad]

Good article by the Globe & Mail on Europe's problems.  Cheers!

 

http://www.theglobeandmail.com/report-on-business/international-news/european/austeritys-future-unclear-in-wake-of-euro-zone-elections/article2424904/page1/

[beerbaron]

That not a good news, I want austerity to be the golden word in Europe, those Fairfax CPI derivatives are not going to turn into a profit by themselves :)

 

BeerBaron

[prevalou]

That is the bad side of the markets. One can be blindsided by its positions in the markets. That is a good reason to prevent government officials from owning a portfolio of equities. Imagine a president who would own cemeteries, his obsession would be a lot of people to die...

[prevalou]

Actually, it shows the power of incentives.

[Packer16]

This will be an interesting test to see the markets reaction to spending to solve a solvency versus a liquidity crisis.  Prevalou what is your take on Hollander in terms of his rhetoric versus his policies.  Do you have a concern that since he has not held a major office before his rhetoric may be more closer to what his policies versus a play to get votes?  The press and others seem to be convinced of the latter.

 

Packer

[prevalou]

I think that in France left and right are the same thing: more power for the State to govern your life, your savings, your expenditures, etc. The elit (left or right) comes from the same school (ENA or École Nationale d'Administration). Hollande and Sarkozy have the same sort of advisers (technocrats), who know each others. They are socialists and pro-euro. I don't expect a great change: some rhetoric and symbolic gesture, then a pro-european stance after blaming the predecessor for the bad situation. I don't expect much spending but more taxes.

[prevalou]

There is a very important election for Hollande in june (nationale assemblée representatives). So rethoric must continue until june.

[prevalou]

I remember Cummins and Steinberg writing In the last Leucadia annual letter that once us rates become normal, USA Will be the problem, not Greece...