Hungary, Romania, and Serbia are also struggling to sell off new government debt even though IMF support is in place, .
In fact, Romania has failed to sell debt at every auction since July.
and had only partial sales in 10 other auctions. Hungary’s auction last week also came up short.
And it isn’t like these countries aren’t getting any help already. In support of their austerity plans, the IMF provided at total of . Romania has just agreed to take from the IMF.
What this does point out is that markets don’t become more confident in countries because they enact austerity plans. Instead, they are more concerned about tax receipts, and whether these weak European countries can return to growth, and pay their creditors on time.
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One would think these countries have learned their lesson and have stopped borrowing any more money.
They should be repaying their debts instead of borrowing more. Or at least they should be declaring insolvency and bankruptcy, if they can’t repay their debts.
At some point, they need to break their debt addiction and start living normal lives. But it seems that like many drug addicts, they are incapable of breaking their addiction on their own. It’s up to the lenders now to break their debt addiction by refusing to lend them any more money.
Good thought Nick. What country are you from again? How much did ‘you’ or your compatriots borrow last month? Also, how much of the past amounts lent are funneled back to the major industries of the lending nations, whether it makes sense for the borrowing country’s population or not. Addiction is one way to look at it – indentured servitude is another.
With Eastern European loans sitting on the books of Austrian & German banks denominated in a CHF thats rising higher, there will be banks failing enmasse in these two countries.
It looks like the monetary system is a pain in the ass.
a picture from 1989 Romania revolution. Didn’t you
Why the lowest 30-yr fixed mortagage rate in history is a bullish sign.
FINALLY: Microsoft just stopped pretending it’s a growth company. So what’s next?
What to do when equity duration collapses and gold and bonds get crowded.
The middle class is 70 percent of the economy, but they don’t have any money.
Read the article on www.businessinsider.com
Despite Austerity, Romania, Serbia, And Hungary All Have Failed Bond Auctions
Hungary, Romania, and Serbia are also struggling to sell off new government debt even though IMF support is in place, .
In fact, Romania has failed to sell debt at every auction since July.
and had only partial sales in 10 other auctions. Hungary’s auction last week also came up short.
And it isn’t like these countries aren’t getting any help already. In support of their austerity plans, the IMF provided at total of . Romania has just agreed to take from the IMF.
What this does point out is that markets don’t become more confident in countries because they enact austerity plans. Instead, they are more concerned about tax receipts, and whether these weak European countries can return to growth, and pay their creditors on time.
To embed this post, copy the code below and paste into your website or blog.
One would think these countries have learned their lesson and have stopped borrowing any more money.
They should be repaying their debts instead of borrowing more. Or at least they should be declaring insolvency and bankruptcy, if they can’t repay their debts.
At some point, they need to break their debt addiction and start living normal lives. But it seems that like many drug addicts, they are incapable of breaking their addiction on their own. It’s up to the lenders now to break their debt addiction by refusing to lend them any more money.
Good thought Nick. What country are you from again? How much did ‘you’ or your compatriots borrow last month? Also, how much of the past amounts lent are funneled back to the major industries of the lending nations, whether it makes sense for the borrowing country’s population or not. Addiction is one way to look at it – indentured servitude is another.
With Eastern European loans sitting on the books of Austrian & German banks denominated in a CHF thats rising higher, there will be banks failing enmasse in these two countries.
It looks like the monetary system is a pain in the ass.
a picture from 1989 Romania revolution. Didn’t you
Why the lowest 30-yr fixed mortagage rate in history is a bullish sign.
FINALLY: Microsoft just stopped pretending it’s a growth company. So what’s next?
What to do when equity duration collapses and gold and bonds get crowded.
The middle class is 70 percent of the economy, but they don’t have any money.
