osoab
16th December 2011, 05:25 PM
I don't know what you would call this.
Only nine EU states needed to ratify new treaty (http://www.marketwatch.com/story/only-nine-eu-states-needed-to-ratify-new-treaty-2011-12-16)
BOSTON (MarketWatch) -- Only nine of the European Union's 26 participating states will need to ratify a proposed new treaty in order for it to take effect, U.K. broadcaster Sky News reported Friday. According to Sky, EU officials are only requiring nine states out of concern that some nations would be unable to speedily ratify the document due their own particular constitutional and legal issues. The new treaty, aimed at shoring up confidence in the euro and the capital markets, calls for tighter fiscal controls among member states in response to the ongoing European sovereign debt crisisSo that is like 34% will force the others.
What is the correct term for the minority dictating for the majority in this instance?
Here's a little more Euro fun.
Revised EFSF Draft Shows Italy, Spain Responsible For One Third Of European Bailout Funding (http://www.zerohedge.com/news/revised-efsf-draft-shows-italy-spain-responsible-one-third-european-bailout-funding)
Indicating just what a banana continent Europe has become, we present the latest, December version of the EFSF term sheet, where we want to emphasize just two things. First, as the slide below shows, even with Italian and Spanish bond yields blowing out beyond stratospheric levels, and is now glaringly obvious that Spain and Italy will be first in line for the next bailout which may come as soon as a week from today (thank you Australia (http://www.zerohedge.com/news/australian-banks-given-one-week-prepare-european-meltdown)), the EFSF still claims that Italy and France will be responsible to fund capital into the EFSF. How much capital? €232 billion to be specific. Which just so happens, is just under one third of the total amount that has been "guaranteed" by EFSF commitments (with insolvent Greece, Ireland and Portugal obviously stepped out). Let us repeat: One Third of the European bailout firepower resides with the insolvent Italy and Spain. We also get the following: "In case a country steps out, contribution keys would be readjusted among remaining guarantors and the guarantee committee amount would decrease accordingly." In other words, as we said back on July 21 (http://www.zerohedge.com/article/fatal-flaw-europes-second-bazooka-bailout-82-million-soon-be-very-angry-germans), when France is the last country to be stopped out of the contribution quota, it will be all up to Germany, or else. And second, and very near and dear to the recently popular topic of rehypothecation, we find that "Once purchased, EFSF could use for repos with commercial banks to support EFSF?s liquidity management." In other words, the bonds received to bailout the broke countries, can then be recycled with the ECB all over again (and potentially infinitely with no haircuts assuming Europe funnels everything through some London-based HoldCo), doubling down the capital burden on the ECB's already meaningless 5 billion capital tranche, then potentially re-repoed, and so on. And there are those who complain that Europe "does not print."
Only nine EU states needed to ratify new treaty (http://www.marketwatch.com/story/only-nine-eu-states-needed-to-ratify-new-treaty-2011-12-16)
BOSTON (MarketWatch) -- Only nine of the European Union's 26 participating states will need to ratify a proposed new treaty in order for it to take effect, U.K. broadcaster Sky News reported Friday. According to Sky, EU officials are only requiring nine states out of concern that some nations would be unable to speedily ratify the document due their own particular constitutional and legal issues. The new treaty, aimed at shoring up confidence in the euro and the capital markets, calls for tighter fiscal controls among member states in response to the ongoing European sovereign debt crisisSo that is like 34% will force the others.
What is the correct term for the minority dictating for the majority in this instance?
Here's a little more Euro fun.
Revised EFSF Draft Shows Italy, Spain Responsible For One Third Of European Bailout Funding (http://www.zerohedge.com/news/revised-efsf-draft-shows-italy-spain-responsible-one-third-european-bailout-funding)
Indicating just what a banana continent Europe has become, we present the latest, December version of the EFSF term sheet, where we want to emphasize just two things. First, as the slide below shows, even with Italian and Spanish bond yields blowing out beyond stratospheric levels, and is now glaringly obvious that Spain and Italy will be first in line for the next bailout which may come as soon as a week from today (thank you Australia (http://www.zerohedge.com/news/australian-banks-given-one-week-prepare-european-meltdown)), the EFSF still claims that Italy and France will be responsible to fund capital into the EFSF. How much capital? €232 billion to be specific. Which just so happens, is just under one third of the total amount that has been "guaranteed" by EFSF commitments (with insolvent Greece, Ireland and Portugal obviously stepped out). Let us repeat: One Third of the European bailout firepower resides with the insolvent Italy and Spain. We also get the following: "In case a country steps out, contribution keys would be readjusted among remaining guarantors and the guarantee committee amount would decrease accordingly." In other words, as we said back on July 21 (http://www.zerohedge.com/article/fatal-flaw-europes-second-bazooka-bailout-82-million-soon-be-very-angry-germans), when France is the last country to be stopped out of the contribution quota, it will be all up to Germany, or else. And second, and very near and dear to the recently popular topic of rehypothecation, we find that "Once purchased, EFSF could use for repos with commercial banks to support EFSF?s liquidity management." In other words, the bonds received to bailout the broke countries, can then be recycled with the ECB all over again (and potentially infinitely with no haircuts assuming Europe funnels everything through some London-based HoldCo), doubling down the capital burden on the ECB's already meaningless 5 billion capital tranche, then potentially re-repoed, and so on. And there are those who complain that Europe "does not print."