Greece Watch...

[UndercoverElephant]

... and as for the UK?

BBC News - 16/05/12

The eurozone was "tearing itself apart" and the UK would not be "unscathed", said Bank governor Sir Mervyn King.

Article continues ...

I'm growing a soft spot for poor old Mervyn. It's pretty obvious he knows what is coming, and he is trying to warn people...sort of.

[ujoni08]

Me too. Merv seems quite sensible for one in such a position

[Aurora]

In his latest report, this is what Merv had to say about oil:

Oil prices rose sharply around the time of the February Report
but have fallen back in recent weeks (Chart 4.3). The initial
increase in oil prices was likely to have reflected developments
in oil supply rather than positive news on global demand, as
other commodity prices were largely unchanged over that
period (Chart 4.3). Indeed, there were some disruptions to
actual oil production, such as those in South Sudan. And there
were also concerns about future oil supplies, in part due to
political tensions in the Middle East — particularly the EU
embargo on Iranian oil exports, which is likely to reduce overall
market capacity. The fallback in oil prices over recent weeks is
likely to have reflected weaker global demand prospects
together with some easing in those concerns over oil supply.

Those demand and supply considerations will be reflected in
the spot and futures prices of oil. In the fifteen days running
up to the May Report, the spot price and futures curve, in
sterling terms, were broadly back to their levels at the time of
the February Report (Chart 4.4), suggesting a small decline in
the price of oil over the next couple of years. But there are
risks around that profile. An intensification of concerns about
future oil supply could raise oil prices. But they could fall
further if world demand prospects weaken. Movements in the
prices of option contracts suggest that the relative weight that
market participants attach to a rise in oil prices has fallen in
recent weeks (Chart 4.5).

See: http://www.bankofengland.co.uk/publicat ... r12may.pdf

[Aurora]

The Guardian - 16/05/12

How Greece's exit from the euro would affect UK consumers

As the eurozone crisis intensifies, we look at the impact a Greek exit would have on savers, spenders and speculators.

Article continues ...

[Aurora]

Cartoon courtesy of The Independent - 17/05/12

[emordnilap]

On the subject of boating, we've always a minister or two up for a gaffe:

http://www.broadsheet.ie/2012/05/16/the ... el-noonan/

Solidarity, comrades!

[Aurora]

On the subject of boating, we've always a minister or two up for a gaffe:

http://www.broadsheet.ie/2012/05/16/the ... el-noonan/

Solidarity, comrades!

I think he's also missed an episode.

[Aurora]

The Guardian - 17/05/12

Cost of Greek exit from euro put at $1tn

UK government making urgent preparations to cope with the fallout of a possible Greek exit from the single currency.

Article continues ...

[Aurora]

BBC News - 17/05/12

Greece names caretaker cabinet ahead of new elections

Article continues ...

A leading German economist has suggested a Greek exit from the euro would be better for both Greece and the eurozone.

Hans-Werner Sinn, head of the Munich-based Ifo institute, said that in order to stay in the euro, Athens would have to cut prices and wages by 30-40% to make its goods competitive, but could not do so because it would bring Greece to the "brink of civil war".

"The Greeks must give up the euro as quickly as possible and reinstate the drachma," he told the Rheinische Post.

[Aurora]

The Guardian - 17/05/12

German stance on Greek crisis softens as eurozone fears mount

Angela Merkel, under pressure to ease her austerity fixation, has said she is open to stimulus measures to help Greeks.

Article continues ...

P.S. Don't forget to watch Pesto's program @ 9.00pm on BBC2 this evening.

[PS_RalphW]

Greece downgraded to CCC credit rating by Fitch

http://www.guardian.co.uk/business/2012 ... -euro-exit

Threatens to put all Eurozone soverign ratings on negative watch.

[UndercoverElephant]

Greece downgraded to CCC credit rating by Fitch

http://www.guardian.co.uk/business/2012 ... -euro-exit

Threatens to put all Eurozone soverign ratings on negative watch.

Which just goes to show how ridiculous the ratings are.

http://en.wikipedia.org/wiki/Fitch_Group

BB : more prone to changes in the economy
B : financial situation varies noticeably
CCC : currently vulnerable and dependent on favorable economic conditions to meet its commitments
CC : highly vulnerable, very speculative bonds
C : highly vulnerable, perhaps in bankruptcy or in arrears but still continuing to pay out on obligations
D : has defaulted on obligations and Fitch believes that it will generally default on most or all obligations
NR : not publicly rated

Greece is D, not CCC.

[UndercoverElephant]

http://www.reuters.com/article/2012/05/ ... W720120516

* Italian banks want ratings ignored after mass downgrade

* European banks meet to discuss curbing raters' powers

By Arno Schuetze and Gianluca Semeraro

FRANKFURT/MILAN, May 16 (Reuters) - Italian banks struck back at credit agencies after Monday's mass downgrade by asking local and European regulators to disregard their credit ratings, while Europe's biggest lenders met to discuss curbing raters' powers.

If all else fails, conspire to shoot the messengers.

[kenneal - lagger]

Some one should have sued then over their ratings of sub-prime mortgages. They wouldn't be around now if they had been.

[UndercoverElephant]

Some one should have sued then over their ratings of sub-prime mortgages. They wouldn't be around now if they had been.

Then there would be no messenger to shoot.