Thursday, December 29, 2011

Pizza in 30 minutes at 5.5% yield

Okay pizza is really American, but if Italy was a pizza shop, the good news is they were able to refinance their debt at lower rates than they've been paying. The bad news is they weren't able to sell all of their pizzas (bonds). The ten year rate was still almost 7% while 3 year notes are down to 5.5%. These rates are still way too high.

The really bad news is the dough supplier (European banks) were given a big pile of dough by the European Central Bank to buy sovereign debt with, and they aren't really stepping up to the plate. The ECB could have simply bought the debt directly at a negligible rate (they simply printed the money anyway). But the ECB, like the Fed, is run by bankers, for bankers, forever and ever, amen. They get all the pizza, the rest of us can eat cake.

From the right wingers don't get it file: Foreign manufacturers are threatening to leave Alabama after a German car company executive was jailed by local police for not having his papers on him. He made the mistake of thinking the Stasi were gone with East Germany. Even the Red Chinese are thinking of leaving. Alabama legislators responsible for these unconstitutional laws aren't backing down. The stupid never admit they're wrong.