Daily Archive: July 25, 2012

Today on The Stars Hollow Gazette

Our regular featured content-

These featured articles-

Special Coverage of the 2012 Summer Olympics in London-

Follow us on Twitter @StarsHollowGzt

This is an Open Thread

The Stars Hollow Gazette

Austerity Insanity

Cross posted from The Stars Hollow Gazette

Insanity: doing the same thing over and over again and expecting different results.

~Albert Einstein~

Europe losing battle against debt crisis

Europe is fighting losing battles on two fronts. The debt crisis which began in Greece almost three years ago has spread to other countries. The recovery from the global financial crisis is ending, and the region will be in recession during the rest of the year. To combat the debt crisis, Greece, Ireland and Portugal have received bailout funds from the EU, European Central Bank and the International Monetary Fund (the “troika”), but are required to reduce borrowing through cuts in spending and higher taxes. To offset the recessionary impact of the fiscal tightening, the ECB has repeatedly eased monetary policy to encourage lending to the private sector.

Neither measure has worked as intended. The eurozone’s latest unemployment figure of 11.1 per cent in May is the highest in the euro era. Spain, the country recording the region’s highest unemployment rate of 24.6 per cent, announced a €65bn fiscal tightening programme this month. The new austerity measures will result in a deeper recession and even higher unemployment.

On the monetary front, the ECB implemented two repurchase agreements totalling €1tn with the region’s banks. While the aim was to ease the liquidity crisis that the banks experienced in November, the ECB move had the perverse impact of making those banks the principal purchasers of their own governments’ debt as foreign investors exited. This raises the risk for banks in case their governments default on their debt, or restructure payments. After a cut in the deposit rate the ECB pays the banks to zero on July 5, the central bank expected the banks to increase loans. Instead, they appear to be sitting on the funds.

The austerity measures that Germany has insisted on imposing on financially strapped countries as a requirement for bailing out the banks that caused it all, is coming back to bite the hand that fed it.

Germany Under Cloud From Euro Zone Woes

FRANKFURT – Germany’s stellar credit rating has been thrown into doubt because of the cost of holding together the euro zone, potentially making it more difficult for Chancellor Angela Merkel to muster political support to aid Greece and Spain.

Moody’s Investors Service said late Monday that it was changing the outlook on Germany, as well as on the Netherlands and Luxembourg, to “negative,” citing what it said was an increased risk that those countries will have to bear the cost of propping up Spain and Italy.

That helped push up borrowing costs Tuesday for both Germany and Spain ahead of talks late in the day between the finance ministers of both countries in Berlin.

While Germany’s bond yields remain near record lows, Spain’s have reached levels that are considered unsustainable for long, raising fears that it will have to ask for aid that its European partners cannot afford.

Austerity’s Big Winners Prove To Be Wall Street And The Wealthy

Governments in Europe, most notably the United Kingdom, have also pursued tax cuts for the rich while imposing austerity measures on the working classes. And the European financier class has benefited even more directly than their American counterparts from these budgets.

Every time the European Union has reached a crisis point on the debt carried by Greece or Spain, EU leaders, especially German Chancellor Angela Merkel, have come to the rescue with bailout funds. That money goes to the banks that own Greek and Spanish debt, whose holdings would take a hit if either country were unable to repay. But the bailout comes with harsh austerity requirements intended to encourage budgetary discipline, so it’s ordinary citizens who end up taking the hit. The most vulnerable populations are harmed by the bailouts, while the well-paid financial professionals who made the deals to finance Greek and Spanish deficits in the first place continue profiting handsomely.

“Imposing pain on Greeks is … a blood price for the ever-repeated bailouts whose actual beneficiaries are said to be Greeks, but are in fact French and German bankers,” said (James) Galbraith.

Eventually it will all come to an end. Then what?

On This Day In History July 25

Cross posted from The Stars Hollow Gazette

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

Click on images to enlarge

July 25 is the 206th day of the year (207th in leap years) in the Gregorian calendar. There are 159 days remaining until the end of the year.

 

On this day in 1788, Wolfgang Mozart completes his Symphony No. 40 in G minor.

The question of the Symphony’s premiere

There is no completely solid documentary evidence that the premiere of the 40th Symphony took place in Mozart’s lifetime. However, as Zaslaw (1983) points out, the circumstantial evidence that it was performed is very strong. On several occasions between the composition of the symphony and the composer’s death, symphony concerts were given featuring Mozart’s music, including concerts in which the program has survived, including a symphony, unidentified by date or key.

Most important is the fact that Mozart revised his symphony (the manuscripts of both versions still exist). As Zaslaw says, this “demonstrates that [the symphony] was performed, for Mozart would hardly have gone to the trouble of adding the clarinets and rewriting the flutes and oboes to accommodate them, had he not had a specific performance in view.” The orchestra for the 1791 Vienna concert included the clarinetist brothers Anton and Johann Stadler; which, as Zaslaw points out, limits the possibilities to just the 39th and 40th symphonies.

Zaslaw adds: “The version without clarinets must also have been performed, for the reorchestrated version of two passages in the slow movement, which exists in Mozart’s hand, must have resulted from his having heard the work and discovered an aspect needing improvement.”

Concerning the concerts for which the Symphony was originally (1788) intended, Otto Erich Deutsch suggests that Mozart was preparing to hold a series of three “Concerts in the Casino”, in a new casino in the Spiegelgasse owned by Philipp Otto. Mozart even sent a pair of tickets for this series to his friend Michael Puchberg. But it seems impossible to determine whether the concert series was held, or was cancelled for lack of interest. Zaslaw suggests that only the first of the three concerts was actually held.

Cartnoon

The Correspondents Explain – Political Parties – The Democratic Party (1:59)

Muse in the Morning

Photo Sharing and Video Hosting at Photobucket
Muse in the Morning


An Edge in the Rainbow

Late Night Karaoke

The reason why they will never hold Wall Street accountable

  A lot of people who are hoping that once Obama gets re-elected that he will prosecute the criminals on Wall Street who currently blatantly flaunt the law.

  I hate to shatter naive illusions, but if Obama was ever going to be serious about cracking down on white-collar crime and the rape of the working class he would have already started.

 However, some of you might not be discouraged so easily. For those people I would like to point out that next Wednesday is the 5-year anniversary of the two major Bear Stearns hedge funds filing for bankruptcy. This immediately ended the housing bubble and triggered a credit crunch that eventually led to Lehman Brothers going under and the global economic crisis that is with us today.

 So what has that got to do with prosecuting the criminals on Wall Street? Because the SEC has a 5 year statute of limitations for financial fraud.