Hard hitting global and local news
Summary : The Markit Eurozone PMI® Composite Output Index was unchanged on March’s reading of 46.5 in April, according to the flash estimate.
Please consider Double Standards: Europeans Are Right to Be Angry with Merkel Chancellor Angela Merkel has tenaciously insisted that austerity is the only way out of the crisis for ailing EU countries. She doesn’t practice what she preaches in Germany, though, which makes growing anger toward her understandable. The question is not about whether Krugman is right when he almost obsessively labels Merkel "dim-witted" and writes that "senior German officials are living in Wolkenkuckucksheim — cloud-cuckoo land." No, it is not the know-it-alls from abroad who spark doubts
Even diehard supporter of the eurozone now see it cannot work. For example, please see Eurointelligence Founder Wolfgang Münchau, Once a Staunch Euro Supporter, Now Welcomes the Anti-Euro Party "Alternative for Germany"
View article: Germany’s Net Foreign Assets Exceed €1 Trillion; 10 Compete Failures of the Eurozone
Backing up what Ambrose Evans-Pritchard said with hard data, the Italian site Il Sole 24 Ore reports New Fall in Bank Lending to Households and Businesses . Loans to businesses and non-financial families continue to face strong decrease
EU officials are now swarming over Cyprus threatening to cut off funds to Laiki , Cyprus’ second largest bank if the deal does not go through. Nonetheless, Cypriot politicians are balking because they know what will happen to those who go along with EU blackmail threats
The pertinent question for today is “How many lies will people believe?” I ask that because a German government spokesman says The compulsory levy to pay the depositors in Cyprus, was a special case as Merkel guarantees German deposits for the first time since 2008. The compulsory levy to pay the depositors in Cyprus, is a “special case”, says the Chancellor.
Also note that EU Court Strikes Down Spain’s Eviction Law . Think the parlay of EU contagion-begging actions for a second. Spanish banks will not be able to evict homeowners, who in turn will be give reason to default.
Expression of the Day: "Ducks are Fat at the Back" I was intrigued by a quote in the Financial Times by former German Chancellor Gerhard Schröder who won a standing ovation when he returned to remind his supporters of their ancient triumphs. Schröder’s message for the party was to persevere in this year’s general election, with a real chance of beating chancellor Merkel’s centre-right coalition in the final weeks of the campaign. Schröder claimed Peer Steinbrück, the SPD candidate for chancellor, should stick to his guns in spite of trailing in the opinion polls.