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LQD: "The speculators have to be burned."

by ManfromMiddletown Tue Feb 9th, 2010 at 12:18:08 PM EST

Yesterday, the FT picked up comments by the Spanish development minister, Jose Blanco.

Blanco denounces plot against Spain and the euro

While the economic vice, Elena Salgado, has traveled to London today to appease the spirits of investors, Development Minister, Jose Blanco, accused the "financial speculators" of orchestrating a plot against the euro and the Spanish market. "Nothing is happening in the world, including foreign newspaper publishers, is casual or innocent," said Blanco. The deputy general secretary of the PSOE denounced an "attack against the euro and the existence of" somewhat murky maneuvers "to avoid scrutiny of financial markets.

"Everything serves a purpose. The apocalyptic comments on the economic situation of Spain do not benefit our country. There are an attack on the euro and should be given an answer," Blanco said.


Today, famed economist Joseph Stiglitz backed up Blanco's comments. (translation mine)

In a LSE Conference yesterday, and in various interviews with British media, Joseph Stigliiz has accused speculators of trying to provoke the collapse of Greece and other eurozone countries, like Portugal and Spain.  

Stiglitz's words arrive after Jose Blanco, Spanish minister of Development, accused speculators of causing the rise in the cost of Spanish debt in the markets.

"Europe should demonstrate soldarity with the countries being attacked," said Stiglitiz in the talk at LSE.

"Speculators always look for the weakest link.  What's happening is the same as in Hon Kong in 1997-1998," according to Stiglitz, who received the 2001 Nobel Prize for Economics.  "What Hong Kong did then was raise interest rates and intervene in the market.  Europe should do the same and burn the speculators," the economist said to Sky News.

This should be fun to watch.

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Also see this thread in the Tuesday Salon.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Tue Feb 9th, 2010 at 02:22:37 PM EST
I saw that.

The good thing is that this is going to, hopefully, put a hold on the possibility of contagion.

The better thing is that I think that Goldman Sachs just got burnt bad.  I suppose that could be bad depending on how Goldman Sachs tries to play this out.

While it would be beautiful if Goldman Sachs bit the dust, the big question is what they are connected to.  I guess the threat of contagion isn't over just yet then.

And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg

by ManfromMiddletown (manfrommiddletown at lycos dot com) on Tue Feb 9th, 2010 at 02:35:50 PM EST
[ Parent ]
Unfortunately, Goldman is connected to Giethner and Summers at the hip, or higher. But it still has to be determined that Goldman will not succeed in staring down both the US and the EU. At least it appears that Mervin King has at least some backbone. Guess I should check the market close today.  I have been having all together too much fun replacing tile above the tub/shower.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Tue Feb 9th, 2010 at 05:34:51 PM EST
[ Parent ]
As we've seen over the last 18 months, the speculators will burn themselves without government intervention.  The trick is to stop the goddamn politicians from bailing their asses out.  If Goldman-Sachs had been allowed to go under we wouldn't be having this now.

She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre
by ATinNM on Tue Feb 9th, 2010 at 02:28:16 PM EST
Amen to that.

I do wonder if Goldman Sachs will try to get their satisfaction from the US government though, and whether Obama will let that happen again.

And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg

by ManfromMiddletown (manfrommiddletown at lycos dot com) on Tue Feb 9th, 2010 at 02:37:05 PM EST
[ Parent ]
A rhetorical question, I presume?  The White House will diaper GoldSacks like a newborn babe.  Obama talks the talk, but I think he's incapable of walking the walk.  Do not expect the US to break the too-bigs-to-fail.  The rest of you will have to impose it.
by rifek on Sat Feb 13th, 2010 at 10:28:12 PM EST
[ Parent ]


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