Well my earlier bet on LTRO as being around Euro650BN was wide of the mark!
The ECB's 3 year LTRO has just been announced as being Euro529BN, given to the 800 banks which have come forward with their begging bowls.
Wednesday, February 29, 2012
Happy LTRO Day
At 10:20GMT today we will know how much money has been borrowed under the ECB's LTRO scheme, which is being used to sandbag banks in the likely event of a sovereign debt default.
The ECB claims that the money will be used to stimulate growth, the reality is that it will be placed by the banks at the ECB to be used when the forthcoming Greek default causes a run on the banks.
For what it is worth, I am taking a non financial punt on LTRO being around Euro650BN.
The ECB claims that the money will be used to stimulate growth, the reality is that it will be placed by the banks at the ECB to be used when the forthcoming Greek default causes a run on the banks.
For what it is worth, I am taking a non financial punt on LTRO being around Euro650BN.
Tuesday, February 28, 2012
Dining Room Vintage Botanical Calendar Wall Art
This post has been a long time coming. A while back, my sweet, sweet friend Stephanie {Cre8ive Designs, Inc.), knowing I'm a big fan of botanical art, mailed me a vintage calendar (from 1965!) that she wasn't using and was thoughtful enough to reach out to me and ask if I'd be interested in it. When I said, "of course!" she mailed it to me from California! I was beyond thrilled and so excited to receive it and see the gorgeous images inside that look like beautiful watercolored paintings.
I knew I wanted to hang a grouping of them, but didn't want to spend a fortune on frames, so I went with my $5 WalMart frames without a mat.
I hung them immediately in my dining room, but did a terrible job- they were totally uneven and I grouped all 8 together on a larger wall opposite the window. They hung that way for months until my husband was kind enough to rehang them perfectly straight for me onto two walls. He is so good at hanging pictures, curtain rods, etc., but HATES doing it, complains constantly the whole time, and chides me for not being able to do it myself. I don't mind, because in the end, it looks like this:
Straight!
See how unique and pretty the images are?!
And I kept the calendar part exposed because I thought it added great character to the art.
So I have to give a big ole hug to my friend Stephanie. I'm so glad I am finally getting to share with you how the calendar looks framed and hanging in our dining room. And I am so touched that she thought of me and cared enough to consider what would look nice in my home. I really do take the suggestions of readers to heart and often find myself incorporating your opinions into my design process at home.
And you know how I "met" Stephanie? When I found her Pantry Makeover, and then, being so impressed with her fabric lined walls, emailed her to ask about how she did it. She wrote me right back and we quickly started exchanging emails and checking in on each others' blogs. I actually ended up lining the back of our sitting room shelves with fabric too.
If you aren't familiar with Stephanie's story or her work, I encourage you to check it out. You won't be disappointed. This girl has major talent and, as you now know, a huge heart.
Barroso Speaks
Jose Barroso (President of The European Commission) has addressed the European Semester (no, I had never heard of it either), and stated:
"I insist we have to be clear about the goal, the goal is growth."
Would he care to explain to the people of Greece how their country will grow over the next few years, on the basis of the austerity programme that has been forced down their throats by the Troika?
He went on to say:
"national budgetary decisions are the responsibility of national parliaments and will remain so.."
Not in Greece they're not!
"..growth-boosting reforms are still lagging behind. I mean this in areas such as tax reform, pension reform, labour market reform and opening up the services and retail sectors.
Of course the picture is mixed across the Union, but these are the areas the Commission and Council will focus on in the Country-Specific Recommendations.
"I insist we have to be clear about the goal, the goal is growth."
Would he care to explain to the people of Greece how their country will grow over the next few years, on the basis of the austerity programme that has been forced down their throats by the Troika?
He went on to say:
"national budgetary decisions are the responsibility of national parliaments and will remain so.."
Not in Greece they're not!
"..growth-boosting reforms are still lagging behind. I mean this in areas such as tax reform, pension reform, labour market reform and opening up the services and retail sectors.
Of course the picture is mixed across the Union, but these are the areas the Commission and Council will focus on in the Country-Specific Recommendations.
I know these reforms can be difficult and sensitive."
Quite!
By the way, the title of his speech was "Unity in difference, strength in convergence"; clearly derived from Orwell's "1984" "Freedom is Slavery, War is Peace" etc!
Monday, February 27, 2012
The New Greek Treaty of Versailles
Gregor Gysi (parliamentary group leader of the Left Party) has just addressed the Bundestag, during the debate about the Greek bailout plan, and has compared the Greek bailout plan to the Treaty of Versailles:
"Bei der Krise in Europa greifen wir zu Versailles anstatt zu Marshall...."
"The crisis in Europe, we resort to Versailles instead of Marshall.."
Evidently he has been reading this site, as I said much the same thing two weeks ago:
"Let us be clear that the 50 page "agreement" (written in English) that the Greek political establishment has to agree, in order to receive Euro 130BN, will (if it is accepted) have the same consequences for Greece as the Treaty of Versailles did for the Weimer Republic"
"Bei der Krise in Europa greifen wir zu Versailles anstatt zu Marshall...."
"The crisis in Europe, we resort to Versailles instead of Marshall.."
Evidently he has been reading this site, as I said much the same thing two weeks ago:
"Let us be clear that the 50 page "agreement" (written in English) that the Greek political establishment has to agree, in order to receive Euro 130BN, will (if it is accepted) have the same consequences for Greece as the Treaty of Versailles did for the Weimer Republic"
Germany Trying To Sabotage Greek Bailout
I noted last week that "the IMF regards the EFSF as a busted flush, and has no intention of throwing any more money into the doomed project".
Unsurprisingly, the G20 have now stated categorically in their end of summit communique that no money will be forthcoming until the Eurozone puts more of its own money in, and that it is "essential" that the Eurozone boosts its own firewall first.
Meanwhile, as if deliberately trying to further humiliate and antagonise the Greeks, the German Finance Ministry has announced that more than 160 German tax collectors have volunteered for possible assignments in Greece.
Anyone would think that the Germans were deliberately trying to sabotage the bailout, and force the Greeks to walk away from it!
Given that German Finance Minister Wolfgang Schaeuble doesn't believe that the bailout will succeed, it is in Germany's interests that time and money are not wasted on it.
Unsurprisingly, the G20 have now stated categorically in their end of summit communique that no money will be forthcoming until the Eurozone puts more of its own money in, and that it is "essential" that the Eurozone boosts its own firewall first.
Meanwhile, as if deliberately trying to further humiliate and antagonise the Greeks, the German Finance Ministry has announced that more than 160 German tax collectors have volunteered for possible assignments in Greece.
Anyone would think that the Germans were deliberately trying to sabotage the bailout, and force the Greeks to walk away from it!
Given that German Finance Minister Wolfgang Schaeuble doesn't believe that the bailout will succeed, it is in Germany's interests that time and money are not wasted on it.
Target Furniture Find
Lately, I've found Pinterest to be an amazing source of inspiration for decor steals and deals. I found our Martha Stewart starburst mirror via my friend Amanda's (Amanda Carol at Home) Pinterest board, and then, my friend Stephanie (Cre8tive Designs, Inc.) pinned this settee from Target, which I promptly repinned to my "Yes, Please" board.
I'd been keeping my eye our for a bench or settee for our entryway, and at $249 (on sale), I couldn't beat the price for this Target piece. I previously had my heart set on a settee from Anthropologie, but I was not prepared to pay $1,000 for it.
So, the Target settee won out. I had it in our entryway, then moved it to the area under our stairs for now. I could also envision it at our breakfast table, at the end of our bed, or in our sitting room (it's so versatile I reasoned with my husband). It photographed more grey, but the Target picture is a better representation of it's true color- has more slate blue in it.
I'd been keeping my eye our for a bench or settee for our entryway, and at $249 (on sale), I couldn't beat the price for this Target piece. I previously had my heart set on a settee from Anthropologie, but I was not prepared to pay $1,000 for it.
So, the Target settee won out. I had it in our entryway, then moved it to the area under our stairs for now. I could also envision it at our breakfast table, at the end of our bed, or in our sitting room (it's so versatile I reasoned with my husband). It photographed more grey, but the Target picture is a better representation of it's true color- has more slate blue in it.
Then I added a lumbar pillow I found at Target over the weekend.
The nailhead trim is a nice detail. The settee itself is firm and will provide a couple extra places to sit at James' upcoming second birthday party.
I'm always somewhat hesitant to buy furniture over the internet, but so far, my bed (from Overstock) and this settee, I'm really happy with.
*The silver side table is from Homegoods and the vase is Target with botanicals from Pottery Barn.
Sunday, February 26, 2012
Oil Shipment To Greece Stopped
"Greece relied on Iran for more than half of its oil imports during some months last year after traders and oil majors pulled the plug on supplies and banks refused to provide financing for fear that Athens
would default on its debt."
Unfortunately, Iran has just stopped a shipment of oil to Greece:
"Oil tankers that had come to transfer 500,000 barrels of Iranian oil to a refinery in Greece had to go back empty-handed after Iran refused to give the shipment,"
However, Hellenic have denied the veracity of this story :
"That has nothing to do with us ... all supplies from Iran have been processed normally,"
Well, they would have to deny this wouldn't they?
They are currently negotiating for supplies of oil from elsewhere, any admission that their supplies have been cut will negatively impact those negotiations and cause panic buying in Greece.
Beware denials and irrational optimism from Greek oil companies!
would default on its debt."
Unfortunately, Iran has just stopped a shipment of oil to Greece:
"Oil tankers that had come to transfer 500,000 barrels of Iranian oil to a refinery in Greece had to go back empty-handed after Iran refused to give the shipment,"
However, Hellenic have denied the veracity of this story :
"That has nothing to do with us ... all supplies from Iran have been processed normally,"
Well, they would have to deny this wouldn't they?
They are currently negotiating for supplies of oil from elsewhere, any admission that their supplies have been cut will negatively impact those negotiations and cause panic buying in Greece.
Beware denials and irrational optimism from Greek oil companies!
Saturday, February 25, 2012
The Official Greek PSI Website
The first press release from the Hellenic Republic Ministry of Finance, as per the official and newly created PSI website:
HELLENIC REPUBLIC MINISTRY OF FINANCE
Press Release
For Immediate Release
24 February, 2012
Athens, Greece. The Ministerial Council of the Hellenic Republic today approved the terms of invitations to be made to private sector holders outside the United States of bonds issued or guaranteed by the Republic and selected to participate in the exchange offers and/or consent solicitations to be made by the Republic in furtherance of the 26 October 2011 Euro Summit Statement and the 21 February 2012 Eurogroup Statement, referred to as the Private Sector Involvement. The bonds invited to participate in PSI (listed by series in Annex I) have an aggregate outstanding face amount of approximately Euro 206 billion.
The exchange offers and/or consent solicitations will permit private sector holders to exchange bonds selected to participate in PSI for (i) new bonds to be issued by the Republic on the PSI settlement date having a face amount equal to 31.5% of the face amount of their exchanged bonds, (ii) European Financial Stability Facility notes with a maturity date of two years or less from the PSI settlement date and having a face amount equal to 15% of the face amount of their exchanged bonds, and (iii) detachable GDP-linked securities issued by the Republic having a notional amount equal to the face amount of each holder’s new bonds. On the PSI settlement date, the Republic will also deliver short-term EFSF notes in discharge of all unpaid interest accrued up to 24 February 2012 on exchanged bonds. The terms of the new bonds, GDP-linked securities and EFSF notes are summarized in Annex II.
The consent solicitation relating to Greek-law governed bonds issued by the Republic prior to 31 December, 2011 (having an aggregate outstanding amount of approximately Euro 177 billion) will seek the consent of the affected holders to the amendment of these bonds in reliance on Law 4050/2012 (the Greek Bondholder Act) enacted by the Greek Parliament on 23 February 2012. The proposed amendments provide for the redemption of the affected bonds in exchange for the PSI consideration described above. Under the collective action procedures
introduced by the Greek Bondholder Act, the proposed amendments will become binding on the holders of all the Republic’s Greek-law governed bonds issued prior to 31 December 2011 identified in the act of the Ministerial Council approving the PSI invitations, if at least two thirds by face amount of a quorum of these bonds, voting collectively without distinction by series, approve the proposed amendments. One half by face amount of all the Republic’s bonds subject to the collective action procedures will constitute a quorum for these purposes. The Republic will also separately solicit consents in favour of equivalent amendments from the holders of its foreign-law governed bonds and its foreign-law guaranteed bonds in accordance with the terms of those bonds.
To satisfy regulatory requirements applicable in a number of jurisdictions, the Republic will invite the holders of certain series of bonds to participate in the Republic’s exchange offer but not its consent solicitation, and holders of the Republic’s Swiss-law governed bonds may not exchange their bonds but will be solicited to consent to their amendment. Holders will receive substantially the same consideration irrespective of whether they participate in the exchange offer and/or a consent solicitation. The Republic also intends to invite holders in the United States of America to participate in a concurrent exchange offer and consent solicitation on substantially the same terms. The Republic will not, however, deliver any EFSF notes to holders in the United States of America, who will instead be paid the cash proceeds realized from the sale of the EFSF notes they would otherwise have received.
The full terms of each invitation will be made available in electronic form only through www.greekbonds.gr. In order to participate in an invitation, holders will need to comply with the procedures and offer and distribution restrictions described in the Republic’s related invitation memorandum available online at www.greekbonds.gr.
The invitations will be subject to certain conditions, including a financing condition and a minimum participation condition. Under the financing condition, the Republic will not proceed with any of the transactions contemplated in the invitations unless it meets all of the conditions under the financing agreements entered into with the EFSF for the Republic to be entitled to receive the EFSF notes, which include the approval by EWG, at its absolute discretion, of such disbursements. In addition, unless bonds representing at least 90% of the aggregate face amount of all bonds selected to participate in PSI are validly tendered for exchange, the Republic will not be required to settle any of the exchanges. However, if the Republic receives consents to the proposed amendments that would result in at least 90% of the aggregate face amount of all bonds selected to participate in PSI (including bonds tendered for exchange) being exchanged on the terms proposed by the Republic, the Republic intends, subject to all other conditions being satisfied and in consultation with its official sector creditors, to declare the proposed amendments effective and to complete the exchange of all bonds selected to participate in PSI that would be bound by the proposed amendments.
If at least 75% but less than 90% of the aggregate face amount of all bonds selected to participate in PSI are validly tendered for exchange, the Republic, in consultation with its official sector creditors, may proceed to exchange the tendered bonds without putting any of the proposed amendments into effect. However, if less than 75% of the aggregate face amount of the bonds selected to participate in PSI are validly tendered for exchange, and the Republic does not receive consents that would enable it to complete the proposed exchange with respect to bonds selected to participate in PSI representing at least 75% of the aggregate face amount of all bonds selected to participate in PSI, the Republic will not proceed with any of the transactions described above.
Deutsche Bank AG, London Branch, and HSBC Bank plc have been appointed to act as Closing Agents for the invitations made outside the United States. Bondholder Communications Group LLC and Hellenic Exchanges, S.A. have been appointed to act as the joint Information, Exchange and Tabulation Agent.
HELLENIC REPUBLIC MINISTRY OF FINANCE
Press Release
For Immediate Release
24 February, 2012
Athens, Greece. The Ministerial Council of the Hellenic Republic today approved the terms of invitations to be made to private sector holders outside the United States of bonds issued or guaranteed by the Republic and selected to participate in the exchange offers and/or consent solicitations to be made by the Republic in furtherance of the 26 October 2011 Euro Summit Statement and the 21 February 2012 Eurogroup Statement, referred to as the Private Sector Involvement. The bonds invited to participate in PSI (listed by series in Annex I) have an aggregate outstanding face amount of approximately Euro 206 billion.
The exchange offers and/or consent solicitations will permit private sector holders to exchange bonds selected to participate in PSI for (i) new bonds to be issued by the Republic on the PSI settlement date having a face amount equal to 31.5% of the face amount of their exchanged bonds, (ii) European Financial Stability Facility notes with a maturity date of two years or less from the PSI settlement date and having a face amount equal to 15% of the face amount of their exchanged bonds, and (iii) detachable GDP-linked securities issued by the Republic having a notional amount equal to the face amount of each holder’s new bonds. On the PSI settlement date, the Republic will also deliver short-term EFSF notes in discharge of all unpaid interest accrued up to 24 February 2012 on exchanged bonds. The terms of the new bonds, GDP-linked securities and EFSF notes are summarized in Annex II.
The consent solicitation relating to Greek-law governed bonds issued by the Republic prior to 31 December, 2011 (having an aggregate outstanding amount of approximately Euro 177 billion) will seek the consent of the affected holders to the amendment of these bonds in reliance on Law 4050/2012 (the Greek Bondholder Act) enacted by the Greek Parliament on 23 February 2012. The proposed amendments provide for the redemption of the affected bonds in exchange for the PSI consideration described above. Under the collective action procedures
introduced by the Greek Bondholder Act, the proposed amendments will become binding on the holders of all the Republic’s Greek-law governed bonds issued prior to 31 December 2011 identified in the act of the Ministerial Council approving the PSI invitations, if at least two thirds by face amount of a quorum of these bonds, voting collectively without distinction by series, approve the proposed amendments. One half by face amount of all the Republic’s bonds subject to the collective action procedures will constitute a quorum for these purposes. The Republic will also separately solicit consents in favour of equivalent amendments from the holders of its foreign-law governed bonds and its foreign-law guaranteed bonds in accordance with the terms of those bonds.
To satisfy regulatory requirements applicable in a number of jurisdictions, the Republic will invite the holders of certain series of bonds to participate in the Republic’s exchange offer but not its consent solicitation, and holders of the Republic’s Swiss-law governed bonds may not exchange their bonds but will be solicited to consent to their amendment. Holders will receive substantially the same consideration irrespective of whether they participate in the exchange offer and/or a consent solicitation. The Republic also intends to invite holders in the United States of America to participate in a concurrent exchange offer and consent solicitation on substantially the same terms. The Republic will not, however, deliver any EFSF notes to holders in the United States of America, who will instead be paid the cash proceeds realized from the sale of the EFSF notes they would otherwise have received.
The full terms of each invitation will be made available in electronic form only through www.greekbonds.gr. In order to participate in an invitation, holders will need to comply with the procedures and offer and distribution restrictions described in the Republic’s related invitation memorandum available online at www.greekbonds.gr.
The invitations will be subject to certain conditions, including a financing condition and a minimum participation condition. Under the financing condition, the Republic will not proceed with any of the transactions contemplated in the invitations unless it meets all of the conditions under the financing agreements entered into with the EFSF for the Republic to be entitled to receive the EFSF notes, which include the approval by EWG, at its absolute discretion, of such disbursements. In addition, unless bonds representing at least 90% of the aggregate face amount of all bonds selected to participate in PSI are validly tendered for exchange, the Republic will not be required to settle any of the exchanges. However, if the Republic receives consents to the proposed amendments that would result in at least 90% of the aggregate face amount of all bonds selected to participate in PSI (including bonds tendered for exchange) being exchanged on the terms proposed by the Republic, the Republic intends, subject to all other conditions being satisfied and in consultation with its official sector creditors, to declare the proposed amendments effective and to complete the exchange of all bonds selected to participate in PSI that would be bound by the proposed amendments.
If at least 75% but less than 90% of the aggregate face amount of all bonds selected to participate in PSI are validly tendered for exchange, the Republic, in consultation with its official sector creditors, may proceed to exchange the tendered bonds without putting any of the proposed amendments into effect. However, if less than 75% of the aggregate face amount of the bonds selected to participate in PSI are validly tendered for exchange, and the Republic does not receive consents that would enable it to complete the proposed exchange with respect to bonds selected to participate in PSI representing at least 75% of the aggregate face amount of all bonds selected to participate in PSI, the Republic will not proceed with any of the transactions described above.
Deutsche Bank AG, London Branch, and HSBC Bank plc have been appointed to act as Closing Agents for the invitations made outside the United States. Bondholder Communications Group LLC and Hellenic Exchanges, S.A. have been appointed to act as the joint Information, Exchange and Tabulation Agent.
Friday, February 24, 2012
The "Bloodless" Greek Coup
"Source in EU Greece Task Force: growing concerns the 'prior actions' Athens has to enact to trigger bailout may be 'impossible' to meet."
Aside from the fact that people are now waking up to the fact that the austerity measures and financial targets being imposed on the Greek people are all but impossible to meet, it is also now dawning on people that, in all but name only, the Eurozone has enacted a (as yet bloodless) coup on the Greek people.
Greece has now been placed on "Special Measures" by the Eurozone and, for the next two years, irrespective of the wishes of the Greek people has now ceased to govern itself. Some Greek people now even have to pay for the privilege of working.
No one (aside from maybe those policy wonks who dwell in the bunkers of the Eurozone) seriously thinks that this stands a cat's chance in hell of working.
Why therefore go to all this trouble?
Simple, the decision has already been made to expel Greece from the Eurozone. However, those who have made the decision want Greece to pull the trigger!
Thursday, February 23, 2012
European Commission Forecast Worse Than Worthless
The European Commission, in its February 2012 forecast, has admitted that its November 2011 forecast for the Greek economy is in fact wrong.
"In 2011, economic activity was much weaker than anticipated in the autumn forecast."
Real output in Greece is expected to shrink by 4.3% compared with the November forecast of around 2.6%.
"Greece, Portugal and Spain account for 95% of the rise in unemployment in the EU since late 2010".
Unfortunately, the "success" of the Greek bailout "plan" rests on the reliability of the Commission's eight year forecast for Greece (which states that by 2014 Greece will return to growth). However, as the Commission has admitted, the forecast isn't worth the paper it is printed on.
"Greater spillovers from potential worsening conditions in Greece, due to the large exposure of the financial sector, are substantial."
Here is the Commission's February forecast, which will doubtless be out of date and worthless by mid year!
"In 2011, economic activity was much weaker than anticipated in the autumn forecast."
Real output in Greece is expected to shrink by 4.3% compared with the November forecast of around 2.6%.
"Greece, Portugal and Spain account for 95% of the rise in unemployment in the EU since late 2010".
Unfortunately, the "success" of the Greek bailout "plan" rests on the reliability of the Commission's eight year forecast for Greece (which states that by 2014 Greece will return to growth). However, as the Commission has admitted, the forecast isn't worth the paper it is printed on.
"Greater spillovers from potential worsening conditions in Greece, due to the large exposure of the financial sector, are substantial."
Here is the Commission's February forecast, which will doubtless be out of date and worthless by mid year!
GIVEAWAY {Milk & Cookies Canada} Pillows!
The talented Misty of Milk & Cookies Canada is back with a GIVEAWAY for Honey We're Home readers! Thank you Misty! We adore your pillows and the affordable and designer fabrics available in your shop:) Check it out!
The new hand painted heart pillows are adorable!
Y’all are in for a treat because
Misty is giving away one pillow cover ($20-$25 value) to one lucky reader!!
She is also providing a 10% discount for orders with
Discount Code: HONEYWEREHOME.
The discount code expires on March 2, 2012.
To Enter
*Leave a comment on this post
*Visit Milk & Cookies etsy shop (leave an additional comment)
*Follow Milk & Cookies Blog (leave an additional comment)
*Like Milk & Cookies on Facebook
*Tweet, Facebook, or Blog about this giveaway (leave an additional comment)
*Followers/Subscribers of HWH get an additional entry (leave an additional comment)
The WINNER will be chosen via Random.org and announced on Friday March 2, 2012.
Wednesday, February 22, 2012
Greeks To Pay For Working
It seems that some hapless Greek citizens will now have to pay for the privilege of working (that makes the UK government's Workfare scheme look positively generous).
Source The Press Project:
"Salary cutbacks (called "unified payroll") for contract workers at the public sector set to be finalized today. Cuts to be valid retroactively since November 2011.
Expected result: Up to 64.000 people will work without salary this month, or even be asked to return money. Amongst them 21.000 teachers, 13.000 municipal employees and 30.000 civil servants."
Source The Press Project:
"Salary cutbacks (called "unified payroll") for contract workers at the public sector set to be finalized today. Cuts to be valid retroactively since November 2011.
Expected result: Up to 64.000 people will work without salary this month, or even be asked to return money. Amongst them 21.000 teachers, 13.000 municipal employees and 30.000 civil servants."
Boom! - Greek Bailout Consigned To The Flames
It seems that, in the interests of their Eurozone overlords, the Greek government is going to postpone the April elections.
Apparently implementing the austerity measures required by the Eurozone is taking up so much time, that the "annoying" and time consuming matter of "democracy" has to be placed on the backburner.
Let me be perfectly clear, irrespective of whether the austerity programme had a cat's chance in hell of succeeding (which it didn't), by stifling the democratic process the unelected technocrat Prime Minister has now guaranteed that the social unrest caused by this foolish decision will consign the bailout and Greece to the flames.
Apparently implementing the austerity measures required by the Eurozone is taking up so much time, that the "annoying" and time consuming matter of "democracy" has to be placed on the backburner.
Let me be perfectly clear, irrespective of whether the austerity programme had a cat's chance in hell of succeeding (which it didn't), by stifling the democratic process the unelected technocrat Prime Minister has now guaranteed that the social unrest caused by this foolish decision will consign the bailout and Greece to the flames.
Greece Will Default
Fitch says that the Greek bond swap, if implemented, would constitute a rating default and result in downgrade to "restricted default".
For good measure they have just downgraded Greece from CCC to C.
For good measure they have just downgraded Greece from CCC to C.
Wheels Start To Come Off Greek Bailout
Unsurprisingly, less than 24 hours after the announcement that the bailout had been agreed and that the Greek crisis had been "solved", the wheels are now coming off the agreement.
There will be a G20 summit in Mexico on 25-26 February, where the EU will beg the IMF to increase its contributions to prop up its firewall.
Unfortunately, the IMF regards the EFSF as a busted flush, and has no intention of throwing any more money into the doomed project. In fact, according to the Telegraph, the IMF will threaten to pull the plug on its contribution to the Euro130BN bailout unless the Eurozone creates a Euro750BN fund.
The small problem with this idea is that Germany has no intention of creating such a fund, because it would increase Germany's exposure to default.
Olli Rehn, the EU's economic and monetary affairs commissioner, wants to merge the European Financial Stability Facility (EFSF) with a new European Stability Mechanism (ESM) which has yet to be created.
The fantasy value of this yet to be created ESM is Euro500BN.
However, as with the ludicrous "values" placed on the busted flush of the EFSF, it is safe to assume that the ESM will never reach that level.
As with all matters pertaining to the Eurozone firewall and the bailout, the "leaders" of the Eurozone are building castles in the air.
There will be a G20 summit in Mexico on 25-26 February, where the EU will beg the IMF to increase its contributions to prop up its firewall.
Unfortunately, the IMF regards the EFSF as a busted flush, and has no intention of throwing any more money into the doomed project. In fact, according to the Telegraph, the IMF will threaten to pull the plug on its contribution to the Euro130BN bailout unless the Eurozone creates a Euro750BN fund.
The small problem with this idea is that Germany has no intention of creating such a fund, because it would increase Germany's exposure to default.
Olli Rehn, the EU's economic and monetary affairs commissioner, wants to merge the European Financial Stability Facility (EFSF) with a new European Stability Mechanism (ESM) which has yet to be created.
The fantasy value of this yet to be created ESM is Euro500BN.
However, as with the ludicrous "values" placed on the busted flush of the EFSF, it is safe to assume that the ESM will never reach that level.
As with all matters pertaining to the Eurozone firewall and the bailout, the "leaders" of the Eurozone are building castles in the air.
Tuesday, February 21, 2012
Greek Problem Sorted - LOL!
Some of the media are happily pumping the Eurozone line that the Greek problem is sorted, and that now the second bailout of Euro130BN has been agreed (after a marathon 13 hour session of finance ministers) we can all move on.
Not quite, aside from the fact that the Greek economy is sunk and that borrowing money to pay off debt will not resolve this problem; the private bondholders (sans ECB, which protected itself by sleight of hand last week) will have to take a NPV haircut of 74%.
Institute for International Finance (IIF) crisis resolution official Jean Lemierre was only told of the size of the haircut this morning.
The "party line" is that the creditors will voluntarily accept his haircut. The reality is that there will be a few who refuse to have their "assets" further written down, as such Greece will have to enforce the Collective Action Clauses (CAC) and force the recalcitrant bondholders to accept the 74% haircut (this of course is a default event).
Aside form that, all Greece has to do is to reduce its debt from 160%to 120.5% of GDP in 2020.
"Easy"!!!!
LOL!
This is not over, by any stretch of the imagination.
Here is the Sustainability Analysis by the Troika dated 15 February (as you can see, this will not work).
Greek Sustainability Proposal
Not quite, aside from the fact that the Greek economy is sunk and that borrowing money to pay off debt will not resolve this problem; the private bondholders (sans ECB, which protected itself by sleight of hand last week) will have to take a NPV haircut of 74%.
Institute for International Finance (IIF) crisis resolution official Jean Lemierre was only told of the size of the haircut this morning.
The "party line" is that the creditors will voluntarily accept his haircut. The reality is that there will be a few who refuse to have their "assets" further written down, as such Greece will have to enforce the Collective Action Clauses (CAC) and force the recalcitrant bondholders to accept the 74% haircut (this of course is a default event).
Aside form that, all Greece has to do is to reduce its debt from 160%to 120.5% of GDP in 2020.
"Easy"!!!!
LOL!
This is not over, by any stretch of the imagination.
Here is the Sustainability Analysis by the Troika dated 15 February (as you can see, this will not work).
Greek Sustainability Proposal
Monday, February 20, 2012
Dining Room Lamp Makeover
Slowly but surely I've been working on improving the look and comfort of our dining room. Over the last several months we've added a rug, mirror, drapes and moved our console into the room. I also played musical lamps and brought in lamps that were previously in our living room. The lamps (from Homegoods) have a nice shape and height, but they looked bland against the similarly colored walls and linen chairs. After seeing Cassie's (Hi Sugarplum) recent lamp debate and Janell's (Isabella & Max Rooms) glossy lamp paint job, I decided to paint these lamps to give them some personality.
I just taped a plastic bag over the parts of the lamp I didn't want painted.
And chose a blue I thought would compliment the drapes.
I spayed a thick layer of spray paint on the lamps, but didn't use any gloss. What a difference!
Then I wanted to see how the lamps would look embellished with some ribbon. I literally just taped the ribbon at one end because I didn't want it to be permanent.
I like how the ribbon looks on the shade- but I think the color of the lamp and ribbon is too blue for the room. I should've chosen a color with more aqua in it to compliment the drapes.
I will probably end up repainting these since it's so easy to do and there is such a large array of colors of spray paints to choose from. But I still wanted to show you this project in case you were like me and had never considered spray painting a lamp.
So easy. And check out all the fun spray paint colors I found recently at Lowe's. Now I'm wandering around the house wondering what I can paint next. You do that too, right?!
Greece Agrees To Escrow
The media report that Greece has agreed to an escrow account, whereby bailout funds will be deposited and distributed as and when Greece honours its part of the bailout deal; the escrow account formally subordinates national funding needs to those of creditors.
Government Waive VAT on Military Wives’ Charity Single
HMT have announced the following:
"The Chancellor of the Exchequer, George Osborne, has today announced that the Government will waive VAT on sales of the Military Wives choir’s Christmas single by making an exceptional one-off charitable donation to the Royal British Legion, and Soldiers, Sailors, Airmen and Families Association (SSAFA), the charities chosen to benefit from sales of the song. The donation will be equivalent to the sum of the VAT receipts collected on sales.
Recognising the service of the armed forces and the high levels of public support for the single, as well as the exceptional contribution both charities make through their work with members of the forces and their families, George Osborne and Defence Secretary Philip Hammond want to maximise the donation that the charity receives by adding the VAT equivalent.
George Osborne said:
“Our armed forces demonstrate incredible commitment to the nation and make sacrifices for all of us. The Military Wives choir is doing a great job of raising money for this hugely worthy cause. We will donate the tax collected on the single so that as much as possible of the money spent by the public on this fantastic song goes to charities helping our armed forces and their families this Christmas.”
Philip Hammond said:
“Christmas can be a particularly difficult time for our brave service personnel deployed on operations, but also for their families at home. I am delighted to be supporting the Military Wives choir in this initiative, who in turn are supporting our Armed Forces community.”
Notes for Editors
The fundraising song (Wherever You Are) is performed by the Military Wives choir. All net record proceeds are going to the Royal British Legion and SSAFA. For more information, visit http://www.whereveryouare.co.uk/. The donation will be equivalent to the sum of the VAT receipts collected on sales before the 31 January 2012 and will be funded by HM Treasury. Update - On 19 February 2012 the Government announced that the sales deadline of 31 January would be extended to 31 March 2012 in recognition of the fact that the single’s Brit award nomination is likely to result in additional sales.
"The Chancellor of the Exchequer, George Osborne, has today announced that the Government will waive VAT on sales of the Military Wives choir’s Christmas single by making an exceptional one-off charitable donation to the Royal British Legion, and Soldiers, Sailors, Airmen and Families Association (SSAFA), the charities chosen to benefit from sales of the song. The donation will be equivalent to the sum of the VAT receipts collected on sales.
Recognising the service of the armed forces and the high levels of public support for the single, as well as the exceptional contribution both charities make through their work with members of the forces and their families, George Osborne and Defence Secretary Philip Hammond want to maximise the donation that the charity receives by adding the VAT equivalent.
George Osborne said:
“Our armed forces demonstrate incredible commitment to the nation and make sacrifices for all of us. The Military Wives choir is doing a great job of raising money for this hugely worthy cause. We will donate the tax collected on the single so that as much as possible of the money spent by the public on this fantastic song goes to charities helping our armed forces and their families this Christmas.”
Philip Hammond said:
“Christmas can be a particularly difficult time for our brave service personnel deployed on operations, but also for their families at home. I am delighted to be supporting the Military Wives choir in this initiative, who in turn are supporting our Armed Forces community.”
Notes for Editors
D Day For Greece?
Today, according to the media, is "D Day" (Decision Day) on the second Greek bailout.
Most in the mainstream media, egged on by spin and hype from the usual suspects in the Eurozone, are predicting that the bailout will be agreed and that the Euro130BN will be handed over to Greece without further ado.
However, scratch beneath the surface and the picture isn't quite so rosy.
In the event that the deal is agreed today, acceptance by Greece of the terms of the deal will in effect mean that it has defaulted.
For why?
The ECB has done a better deal for itself than other bondholders, and those that hold out against this subordination will be forced to take a 70% haircut (the is a default event, by any definition of the word).
Additionally, to add to Greece's woes, the Eurozone finance ministers (ever reluctant to trust Greece) are looking into setting up an escrow account which will be used to pay the bailout in tranches (if and when Greece honours its side of the deal).
Finally, in a comment not yet picked up by some in the media, Finland has said the deal will not be approved until 12 March.
Deal done?
No!
Most in the mainstream media, egged on by spin and hype from the usual suspects in the Eurozone, are predicting that the bailout will be agreed and that the Euro130BN will be handed over to Greece without further ado.
However, scratch beneath the surface and the picture isn't quite so rosy.
In the event that the deal is agreed today, acceptance by Greece of the terms of the deal will in effect mean that it has defaulted.
For why?
The ECB has done a better deal for itself than other bondholders, and those that hold out against this subordination will be forced to take a 70% haircut (the is a default event, by any definition of the word).
Additionally, to add to Greece's woes, the Eurozone finance ministers (ever reluctant to trust Greece) are looking into setting up an escrow account which will be used to pay the bailout in tranches (if and when Greece honours its side of the deal).
Finally, in a comment not yet picked up by some in the media, Finland has said the deal will not be approved until 12 March.
Deal done?
No!
Sunday, February 19, 2012
DIY {Mini Potted Plants}
With the gift of a few free minutes this weekend during James' nap time, I made mini faux potted plants. These little guys are so cute and really easy to make, not to mention inexpensive:) The mini terra cotta pots were only .59 cents each and the long garland was $8 with a half-off coupon. The pots are less than 2 inches tall- so sweet!
The leafy stem pulled right off the garland- no cutting required.
I cut the potting foam to fit the pot and inserted several stems.
So easy!
Then I went around adding these bits of cuteness all over the house. The picture below gives you a good idea of the scale of these tiny potted plants.
I think these would also make great place settings for a spring table. You could just write your guests' name on the pot in marker. Super cute!
Happy Monday y'all! p.s. It's my B I R T H D A Y !
Saturday, February 18, 2012
Friday, February 17, 2012
Starburst Mirror (Update to Master Bedroom)
It's a long process, but we are slowly but surely working on turning our master bedroom and sitting area from a dark, cold area into the sanctuary that we want the room to feel like. I've been trying to lighten up the space and started by replacing our brown leather bed with an upholstered bed.
And in the sitting room, we need to go lighter too.
The sitting room has been totally neglected, except for lining the bookshelves with a silvery paisley fabric. I haven't even styled the shelves yet! And the NY bridge photo that was a gift for my husband felt too dark and rectangular for the room. We need curves. After pinning this Martha Stewart starburst mirror twice on Pinterest, I figured it was time to buy it! It was only $35 and it's 30 x 30 inches, available at Home Depot.
I know starburst mirrors are everywhere, but they were nowhere in my home, and I haven't tired of seeing them. I think the mirror is a good size for the space and I like how the star of the mirror breaks up all the straight lines of the TV, windows and frames.
I'm working on replacing the black frames with metallic. I used two $5 frames from WalMart and kept the original mat. I have two more that will go where James' photograph is now. I also need to lower them. (hubby will love more holes in the walls:)
We are getting there.
I'd love to relocate the leather chairs and replace them with something softer . . .
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