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Posted

Carrying over from IDS. Read this and answer the question, "How does a 50% haircut solve the underlying problem for Greece associated with its continued participation in the eurozone?"

 

Reality check:

 

Eurozone Unit Labor Cost in 2007 relative to 1980:

 

Austria ……….­.1.457

Belgium ……….­1.915

Finland ……….­.2.184

France ……….­.2.024

Germany ……..1.­382

Greece ………1­7.056

Ireland ……….­. 2.627

Italy ……….­…..1.2­2­0

Luxembourg ….1.880

Netherland­s ….1.076

Portugal ………8­.936

Spain ……….­…1.212

 

This has led to Greece having the highest unit labor costs in the EU. On top of that, they have the highest Unit Capital Costs, too. If your workers are being paid more than all the other countries in the EU, and the capital costs are the highest in the EU, how can you possibly manufactur­­e and export more, when your EU partners (like Germany and France) can do it for cheaper?

How's the Haircut working for you, Stratos?

Posted

 

What The European Bailout Boils Down To

October 27, 2011By Lee AdlerRuss Winter of Winter Watch, Aaron Krowne of ML-Implode.com, and the Wall Street Examiner’s Lee Adler discuss the implications of the European bailout, the likely targets for stocks, and the implications of the bond market collapse. Lee reviews the signs that the housing market won’t get much worse, but why that’s not good news for the financial system.

 

This is a subscriber only podcast. If you are not a subscriber, click here to access the most recent free podcast posted on Monday, October 24.

 

Posted

It was all a publicity stunt to sell inventory :lol:

 

"Hewlett-Packard Co. (HPQ) said it has decided to keep its personal computer division, after completing a strategic review.

 

The review showed the unit is integrated across key operations including supply chain and procurement, as well as making contributions to the company’s overall brand value, the company said. "

 

http://www.bloomberg.com/news/2011-10-27/hp-to-keep-pc-division-after-review.html

Posted

So, the Greek economy is not currently structured to, you know, carry on in areas like manufacturing and services.

 

Which is probably why the public sector grew - to accommodate the lack of competitiveness.

 

Which was temporarily funded on the cheap by the sugar high of low-interest euro credits.

 

From the Torygraph:

• Deal could reduce Greek debt to 120pc of GDP

http://www.telegraph.co.uk/finance/financialcrisis/8852072/Debt-crisis-as-it-happened-October-26-2011.html

 

Given the lack of competitiveness, Greek wages must shrink for it to make anything at a price that anyone will pay.

 

Shrinking Wages = Shrinking Economy

 

Shrinking Economy = Growing Debt/GDP

 

Growing Debt/GDP = Greater Interest/GDP

 

Greater Interest/GDP = Shrinking Wages

 

They.

Need.

To.

Devalue.

 

The euro is a prison.

Posted

So, the Greek economy is not currently structured to, you know, carry on in areas like manufacturing and services.

 

Which is probably why the public sector grew - to accommodate the lack of competitiveness.

 

Which was temporarily funded on the cheap by the sugar high of low-interest euro credits.

 

From the Torygraph:

• Deal could reduce Greek debt to 120pc of GDP

http://www.telegraph.co.uk/finance/financialcrisis/8852072/Debt-crisis-as-it-happened-October-26-2011.html

 

Given the lack of competitiveness, Greek wages must shrink for it to make anything at a price that anyone will pay.

 

Shrinking Wages = Shrinking Economy

 

Shrinking Economy = Growing Debt/GDP

 

Growing Debt/GDP = Greater Interest/GDP

 

Greater Interest/GDP = Shrinking Wages

 

They.

Need.

To.

Devalue.

 

The euro is a prison.

 

When they sell their government owned companies and a couple of islands Germany will "help" them out.

Posted

It was all a publicity stunt to sell inventory :lol:

 

"Hewlett-Packard Co. (HPQ) said it has decided to keep its personal computer division, after completing a strategic review.

 

The review showed the unit is integrated across key operations including supply chain and procurement, as well as making contributions to the company’s overall brand value, the company said. "

 

http://www.bloomberg.com/news/2011-10-27/hp-to-keep-pc-division-after-review.html

 

Furniture Shops in USofA go out of business all the time, repeatedly...

 

153-LIVE_p0126_26a1furn1.embedded.prod_affiliate.11.jpg

Posted

Can't be all short covering.

Today looks like pure madness to get in for the year end rally.

 

Wurd

 

There'll be some stutters from here into the year-end

 

And on every one the perma-Bears will get all Bear'd up, only to get smoked each time

 

Lots of idiots out there yapping about how a 200+ point move over a month is too far too fast

 

What about the Jul/Aug 250 point down move that occured in half the time?

 

Ugh!

 

Hopeless douches

 

big.chart?nosettings=1&symb=SPX&uf=0&type=4&size=2&sid=3377&style=320&freq=1&time=19&rand=936354204&compidx=aaaaa%3a0&ma=0&maval=9&lf=1&lf2=0&lf3=0&height=335&width=579&mocktick=1

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