Monday, May 30, 2011

I'm shocked, shocked I say, to see a bailout announced on a US holiday weekend.

So, the news all weekend was beyond bleak but since China's mini-bailout last week only seemed to calm the markets for a day, it was clear that Europe was going to have to take further steps to calm the global markets. Well, I expected the German's to really draw a line in the sand this time, but alas, I wrong and it seems like we've entered a new era of can kicking.

"Germany is considering dropping its push for an early rescheduling of Greek bonds in order to facilitate a new package of aid loans for Greece, according to people familiar with the matter. Berlin's concession that it must lend Greece more money, even without burden-sharing by bondholders in the short term, would help Europe overcome its impasse over Greece's funding needs before the indebted country runs out of cash in mid-July."

There are still almost 12 hours until the US markets are open but the early reaction in the futures market is predictable as global markets have jumped on this news.

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I guess I have to follow German politics a little closer to understand their google search trends. If you remember last week, I wondered aloud why the top 5 cities searching for news on the Fukushima nuclear reactors were all in Germany. Well, today's headlines that German will end all nuclear power generation by 2022 is clearly the reason behind the google searches.

"Germany's coalition government agreed early Monday to shut down all the country's nuclear power plants by 2022, the environment minister said, making it the first major industrialized power to go nuclear-free since the Japanese disaster.

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Well, if Linkedin IPO didn't convince you that the social media bubble is nearing it's peak perhaps the fact that AirBNB is about to raise $100 million at a $1 billion valuation might convince you. To gain some perspective on this insanity - AirBNB is basically a 10 year old idea in a fancy new website. They let you rent houses or apartments online for vacation. Huh? That was a really hot idea in 1995. Oh, I forgot the key driver to their valuation is the fact that that Rhodes Scholar Ashton Kutcher (yeah, the trucker hat wearing new Charlie for 2 1/2 Men) put some money in. Yikes! Good luck pitching that story.


2 comments:

Personal Home Inspector said...

This is good news not only in a fuel source but, by removing any defense missile source, they are eliminating the chance of ever being a part of nuclear war. If only more countries would follow suit and do this, it would stop the threat of nuclear war as well and put pressure on those countries that strive to build weaponry for protection when it won't be needed if the world is in the process of disarming. Bravo to Germany for making this move to join the other nations that are already there.

Home Inspector Marketing said...

Safe, clean alternative energy is the future. Fukishima and Chernobyl have poisoned the air, land, water and food in the surrounding areas. It is time to phase out nuclear energy and ramp up wind, solar wave energy and geothermal.