Financial crisis accelerated in EU markets fell sharply

Sahit Muja: Financial crisis accelerated in EU markets fell sharply

European stock markets fell sharply  today as fears grew that ECB action alone cannot save the euro.To me the worst joke is how markets went up when Draghi made his unfounded promise last week.

Last week, Draghi had promised he would do everything to save the euro, raising hopes the ECB would intervene directly. And now markets are down as Draghi emphasized that ECB action alone cannot save the euro.

Everywhere you look, it is the consumer that lacks money to spend, driving down demand. But as soon as a central bank announces they will inflate some more of people’s savings away, investors trip over each other to buy a share of this wonderful economy. So much for investing on long term fundamentals.

Do you folks really think the recovery could start one of these days? By printing more money? It appears that throughout world financial markets “investors” (really “traders”) have very short time horizons.

They cheer every central bank move that reduces tomorrow’s interest rates, since they are using OPM which becomes cheaper to borrow. The true investors are being very guarded with their “investments” (aka capital spending and hiring).

The reality is that nobody has the money to pay for credit fueled growth of the last decade, neither the US nor Europe, not even Germany. You do not solve a debt problem with more debt, at some point the debt has to be restructured and someone is going to take the losses, mainly the banks. This has to end badly.

Austerity is not a destination, it is a path. Handled right, austerity can lead to prosperity if governments and individuals take advantage of it to renew their economies. Handled wrong, it leads to chaos and poverty.

The euro crisis was caused by the reckless spending of southern European countries and the reckless lending of French & German banks.

Reckless spending and reckless lending are two sides of the same coin. The French & German have decided to make only the reckless spenders suffer through austerity to bailout the reckless lenders.

The bailout for Greece was in effect a bailout for French and German banks who held most of Greek debt.

Sahit Muja

President and CEO

Albanian Minerals

New York

Humiliating defeat of socialists in Spain is a very bed news for President Obama.

Sahit Muja: Albanian Minerals

Sahit Muja: Humiliating defeat of socialists in Spain is a very bed news for President Obama.
The U.S.,presidential election could end up being a GOP landslide in 2012.

Spain’s opposition conservatives scored a landslide win to oust the ruling Socialists in general elections in Spain Sunday.
The Popular Party led by Mariano Rajoy has won an absolute majority in parliament.
Spanish conservatives won a historically large mandate at the polls Sunday . In an election marked by bitter disappointment and desperation over the euro zone’s highest unemployment rate,.
The Spain’s socialists conceded a humiliating defeat as official results showed the PP has absolute majority of  seats in the 350-seat  house.

The Socialists under Prime Minister Jose Luis Rodriguez Zapatero led Spain from boom to bust in seven years in charge of the euro zone’s fourth-largest economy.
Spain is now the fifth euro zone country where the government has fallen victim to the debt crisis, following Ireland, Portugal, Greece and Italy.
 The voters in Europe has fiercely punished the Socialists .
The Socialists in the U.S., Europe has promised prosperity, equality, and security. The left in Spain, Greece in the U.S., and  Europe has deliver a collective poverty and massive deficits.

 The Socialism is a ponzi scheme, socialism may show early signs of success and this was evident in Spain, Greece and Italy at the time borrowing and spending billions of euros, other peoples money..
  In the long run, socialism has always proven to be a formula for bankruptcy.
 
The Socialism is a system that ignores incentives. In a capitalist economy, incentives has the importance and drive the success. 
The strength of economy and prosperity can be attributed to an incentive.
 
Spain, Greece and European Union will survive only by providing a free market system of incentives that promote thrift, hard work, and efficiency
 The socialism is a enslavement of the productive to the unproductive.
We also need to get rid of the socialists in other countries in Europe and in the U.S.
Sahit Muja
President and CEO
Albanian Minerals

New York

Europe Union may collapse from crises in Italy and Greece.

Sahit Muja: Albanian Minerals

Sahit Muja: Europe Union may collapse from crises in Italy and Greece.
The world can see the edge of the cliff for Europe, but apparently Italian and Greek leaders do not.

The Italians and  Greeks took loans and enjoyed themselves, but now the parties is over and the Italy , Greece, the banks don’t want to pay a price for their reckless spending and  lending.
We cannot continue to live in a world where a few “elected” leaders, decide that millions are going to become debt slaves for years, while banks, which themselves took crazy risks, get off the hook with bailouts and million dollar bonuses.

It is astonishing and unprecedented how their intransigence is apparently paving the way for utter economic disaster.
What other example is there in modern times where the average man/woman on the street understands with such clarity the nature of an economic problem, yet, the leaders tasked to solve it appear bogged down, less certain than their population as to which direction to go in.
It’s as if the leaders of Europe want only make a halfhearted attempt to save the ailing Euro Union, while implicitly acknowledging the inevitability of it’s demise.

I can’t decide whats more difficult to watch, the slow death of the Euro and the Union, or European leaders dithering and ineptitude when it comes to working together to do what is necessary to avert collapse.
The leadership of most of the European countries such as Italy, Ireland, Greece, Portugal – have become financially irresponsible over a long period of time resulting in the debt crisis of Europe.
It bothers me to think how such irresponsible characters can get elected and become the Presidents an PMs of countries.
Sahit Muja
President and CEO
Albanian Minerals
New York