Words ought to be a little wild, for they are the assault of thoughts on the unthinking
- J.M. Keynes

Thursday, 7 June 2012

At what point does French CDS break through 300?

As another Hopium shot courses through the market’s veins, some exciting news from the other safe haven in the Eurozone:

  1. Hollande rolls back pension age to 60 from 62 since happy shirkers workers are more productive shirkers workers
  2. And for his next move, Hollande is planning to ban unemployment (or something along those lines)
It must be great to have a wealthy neighbour working hard to finance one’s dreams.

All economic data points indicate a worsening situation across the Eurozone (PMIs, unemployment, industrial production, confidence, etc). But the good news is that there is broad political agreement between peripheral nations and others (where politicians are concerned about their re-election prospects and approval ratings). The consensus which seems to be emerging is "Give us the money quick but don't ask for anything in return. We are proud sovereign nations capable of handling our own bailouts with your money."

All eyes on Ben Bernanke to keep the Hopium flowing until Merkel is bullied to pay for a well deserved early retirement at a Spanish beachfront property. After all it's hard work doing a job from which one can never be fired. 

P.S To hazard an answer to the question - 300 before the year is out. Maybe 400 even. Beyond that is impossible because the market will be banned and a command and control economy established.

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