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Wednesday, May 30, 2012

Dueling Bancos

We pick up this morning where we left off last night...the Spanish Central Bank and the ECB duking it out through their respective mouthpieces in the mainstream media.  It reminds me of another famous dueling scene from one of America's greatest movies (obligatory clip below.)

From the WSJ, reports that the EU is  advocating a cross-border banking union to back stop those financial institutions which are: (1) in danger of failing, and (2) those whose host (as in the target of a parasite, not a provider of hospitality) country has already been sucked dry.

And the reply, duly reported 90 minutes later by the Deutsche Borse Group's Market News:

The Germans are right, of course.  But, they're right in a "perfect world" sense, rather than a "politically feasible" sense.  In the end, a deal will get done and the markets will be "saved."  The clue is in the 2d from last paragraph:
German finance minister Wolfgang Schaeuble will meet his Spanish colleague Luis de Guindos in Berlin today... There will be no press statement after the meeting because the talks will be informal.
"Informal" -- that's a polite way of saying someone's going to be squealing like a pig. the rest at

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