http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_03/11/2012_468541
Greece faces close votes
Gov’t sources expect measures to pass on but coalition future appears uncertain 
New Democracy and PASOK officials were hopeful over the weekend that the coalition government will receive the necessary support in crucial votes on Wednesday and Sunday to pass the structural reforms and budget cuts demanded by its lenders, and pave the way for the release of the next bailout tranche.
Sources at the two parties told Kathimerini that they expect between 153 and 157 deputies to back the measures. The only way this number could increase is if a solution is found to the objections that Democratic Left, the junior coalition partner, has to some of the labor reforms demanded by the troika. The leftist party has 16 lawmakers.
Sources close to Prime Minister Antonis Samaras said that contact with the coalition parties and the troika would continue until Wednesday’s vote, when the structural reforms will be put before deputies, but it was unlikely that any major concessions would be made. Should Democratic Left fail to support the measures, there is a possibility it will reject the budget, which will be voted on late Sunday. This would likely lead to the party quitting the coalition.
Samaras is hoping that all 127 of his lawmakers pass the measures and that there is enough backing from PASOK deputies as well. The Socialists lost one lawmaker last week and another said he would not back the measures, leaving 31 MPs. PASOK sources said that they expect at least 26 of the party’s lawmakers to back the measures in Parliament, thereby giving the government the majority it needs.
Nevertheless, even this eventuality would leave the government severely weakened and reduced from three parties to just two. Sources suggested that Samaras might seek a way of keeping Democratic Left in the coalition by offering its leader, Fotis Kouvelis, the opportunity to commit in writing to the budget and all the structural reforms bar the changes to labor legislation.
Parliament’s economic affairs committee began debating the 2013 budget on Saturday. “It is easier for someone to believe in Father Christmas than to believe that these will be the last [austerity] measures,” said SYRIZA MP Euclid Tsakalotos.
http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_03/11/2012_468539
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and.....
http://www.testosteronepit.com/home/2012/11/1/desperate-french-government-threatens-to-requisition-vacant.html
Desperate French Government Threatens To “Requisition” Vacant Buildings
THURSDAY, NOVEMBER 1, 2012 AT 7:21PM
Prime Minister Jean-Marc Ayrault made it official: the government would requisition vacant buildings regardless of who owned them, including office buildings. It would then convert them to apartments and make them available to the homeless and the “badly housed.”
As a first step, he asked for “an inventory of available buildings.” That list should be on his desk in “a few weeks,” he said. He was in a rush to identify these properties “so that we can undertake at least several operations in January and February 2013.” A desperate move to halt the collapse of his numbers. And another broadside at investors.
It’s getting tough for him and President François Hollande. As France sinks deeper into its economic mire, people are losing patience: those who still have confidence in Hollande plunged to 36%, the lowest level of any president six months after taking office (the data go back to 1981). He dropped to 31% among workers —a catastrophe for a Socialist—and to 21% among shop keepers, artisans, business owners, and CEOs [they’d already stirred up the pot: A Capitalist Revolt in Socialist France].
And Prime Minister Ayrault hit 34%. Among his predecessors, only Édith Cresson in 1991 and Alain Juppé in 1995 were lower. Both were sacked, Cresson 11 months into her term, and Juppé two years into his. Only 19% of the shop keepers, artisans, business owners, and CEOs had any confidence in him—despite his “gaffe” that he would be open to discussing the 35-hour workweek to bring down the cost of labor, which was followed by furious backpedaling from the entire Socialist power structure. Among workers, his confidence level dwindled to 29%. An untenable position. He should be polishing his resume.
Instead, he’d requisition buildings.
With his announcement, he backed Housing minister Cécile Duflot. She’d already pointed at the “seriousness of the situation” and declared—as the first major cold wave imposed additional risks on the homeless—that she’d study the possibility ofrequisitioning vacant buildings for the purpose of converting them into housing for the homeless and the “badly housed.”
To preempt the conservative opposition from having public conniptions, she dragged their former standard-bearer Jacques Chirac out of the closet. Back in 1995 when he was still mayor of Paris, he requisitioned, “as everyone remembers,” about 1,000 offices and apartments.
Requisitioning buildings and apartments is a tactic for all sides of the political spectrum. The law that authorized it was passed in 1945 to deal with the post-World War II housing crunch. And during the 1960s, over 100,000 requisition orders were issued.
Advocacy groups such as Jeudi Noir (Black Thursday) and Droit au Logement (Right to Housing) have been pressuring the government to do something about the “housing crisis.” To make a public point, they chose a famous symbol as backdrop for their press conference: 1a, Place des Vosges—a building of 1500 sq. meters (16,000 sq. ft.) that has been vacant since 1965.
I used to live not far from there and walked through the Place de Vosges a lot, always wondering why someone would allow such a valuable property to remain empty. At the time, it was visibly going to heck. Yet it’s in an awesome location, facing the garden in the middle of the square, with galleries and cafés on two sides, and no traffic—an immense luxury in Paris. Members of Jeudi Noir squatted that building for a year until they were removed in 2010, a highly mediatized affair.
Instead of doing his utmost to encourage private sector construction, Prime Minister Ayrault has jumped on the bandwagon of the squatters, sending shivers down the spines of those who invest in real estate development and construction. With perfect timing: just when France desperately needs that business to pick up speed—not only to create sorely needed housing units, but also to create jobs [Worse than the Infamous Lehman September: France’s Private Sector Gets Kicked off a Cliff].
Unemployment is over 10%, youth unemployment over 25%. In disadvantaged areas, such as a number of volatile suburbs, unemployment is far higher. For example, in Clichy-sous-Bois, an eastern suburb of Paris, unemployment is 22%, and youth unemployment is astronomical. The pressure in these areas is rising. They’ve blown up before. Jobs would relieve some of it. But requisitioning buildings and scaring investors won’t.
To counter ugly economic trends that started while Nicolas Sarkozy was still president, the government has re-unearthed the catchword “competitiveness”—entailing the cherished and untouchable 35-hour workweek, equally untouchable wages, and sky-high employer-paid payroll charges. An explosive mix. And it just blew up. Read....Attack On France’s Sacred Cow.
and.......
http://www.zerohedge.com/news/2012-11-02/friday-humor-ecb-explains-what-ponzi-scheme-awkward-silence-follows
Friday Humor: The ECB Explains What A Ponzi Scheme Is; Awkward Silence Follows
From the ECB's Virtual Currency Schemes, aka the "Bash Bitcoin Boondoggle" (p. 27):
A Ponzi scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors. Ponzi scheme organizers often solicit new investors by promising to invest funds in opportunities claimed to generate high returns with little or no risk. In many Ponzi schemes, the fraudsters focus on attracting new money to make promised payments to earlier-stage investors and to use for personal expenses, instead of engaging in any legitimate investment activity
Considering that this elucidation comes from the very same entity that launched the SMP, LTRO, OMT, EFSF, ESM, oh, and of course, TARGET2, and whose head said to not short the EUR as there is "no risk" whatsoever in holding said currency, one would expect that this definition is absolutely spot on...
* * *
And as an added bonus, here is the part in which the ECB appears to be so worried about BitCoin taking over as legitimate "legal tender" from the EUR (which the ECB's Coeure said two days ago is as "solid and long lasting as a diamond") it dedicated an entire report to bash the recently conceived electronic currency:
In an extreme case, virtual currencies could have a substitution effect on central bank money if they become widely accepted. The increase in the use of virtual money might lead to a decrease in the use of “real” money, thereby also reducing the cash needed to conduct the transactions generated by nominal income. In this regard, a widespread substitution of central bank money by privately issued virtual currency could significantly reduce the size of central banks’ balance sheets, and thus also their ability to influence the short-term interest rates. Central banks would need to look at their existing tools to deal with this risk (for instance, trying to impose minimum reserve requirements on virtual currency schemes).
The substitution effect would also make it more difficult to measure monetary aggregates and, as a consequence, would affect the relationship between the monetary aggregates as measured and inflation, which is used to gauge risks to price stability in the medium to longer term.Lastly, on this second aspect, when virtual money is created outside the realm of the central bank and virtual credit can be extended, this may have implications for the way interest rate decisions by the central bank are transmitted through the economy and the central bank’s control over money and credit developments could become less effective.
And while it is one thing for the Chairsatan to say gold is not money but is merely "tradition", it is a whole new level of panic when a major central bank is forced to defend itself against an electronic currency.
http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_02/11/2012_468451
Parties in last-ditch talks
PM seeks to win round coalition partners before austerity vote as MPs confer
With one of the most difficult weeks for his fragile government looming, Prime Minister Antonis Samaras on Friday spoke several times with his coalition partners in a bid to overcome their objections to a tough package of austerity measures and reforms that will be put to a vote in Parliament on Wednesday.
According to sources, Samaras spoke by telephone with socialist PASOK chief Evangelos Venizelos and Democratic Left leader Fotis Kouvelis while sources did not rule out the possibility of a new meeting between the three men over the weekend.
Coalition leaders are also attempting to rally their own MPs ahead of next week’s voting with Samaras set to convene the members of his parliamentary group at 1 p.m. on Sunday and Kouvelis to gather with his MPs at 6 p.m. on Monday. Venizelos is to meet in coming days with a handful of MPs from his party who have indicated that they might vote against the measures, starting with PASOK veteran Costas Skandalidis.
MPs of the main leftist opposition SYRIZA are also to meet on Sunday to discuss the shifting political situation as well as an internal rift that has opened up following a statement by lawmaker Panayiotis Lafazanis that the party is not ready to govern.
Government officials sought to appear positive ahead of Wednesday’s vote with Finance Minister Yannis Stournaras saying he was “reasonably confident” the bill would pass despite resistance from the junior partner in the coalition.
Democratic Left is expected to vote “present” to express its opposition to the labor reforms but to vote in favor of the budget when it comes to Parliament next Sunday, November 11.
The budget sets out some 9.2 billion euros in austerity measures for 2013, including fresh cuts to pensions over 1,000 euros per month. In a last-minute change, the Labor Ministry decided that pensions would be reduced by between 5 and 15 percent depending on the size of the retirement pay rather than up to 25 percent, as had been originally planned.
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http://www.guardian.co.uk/business/2012/nov/02/eurozone-crisis-live-european-factory-data-recession
( D- day for Greece is next Wednesday.... )
A port police officer lights flares during an anti-austerity demonstration in Athens last night. Photograph: Aris Messinis/AFP/Getty Images
Over to Greece where our correspondent Helena Smith says fears are growing over the possibility of defections scuppering next week’s crucial vote on the €13.5bn austerity package that is key to unlocking further aid. She writes:
With D-Day looming ahead of next Wednesday’s vote on the measures, the Greek government is trying to put on a brave face. Emerging from talks this morning with prime minister Antonis Samaras, Athens’ eternally upbeat finance minister, Yiannis Stournaras, said he was “quite optimistic” that the controversial package would ultimately be ratified by the crisis-hit country’s 300-seat House. “And don’t forget after the Greek parliament, the parliaments of member states of quite a few other countries will also vote on the disbursement [of the €31.5bn aid installment Greece stands to receive once the measures are approved],” he told reporters. “So we have to be very, very careful.”
Greece's finance minister Yiannis Stournaras in parliament earlier this week. Photograph: LOUISA GOULIAMAKI/AFP/Getty Images
Helena continues:
But his optimism is not shared by other MPs in the three parties participating in Samaras’ fragile coalition. Rebellion is growing within the ranks of socialist Pasok party following the defections of two high-profile members this week and amid mounting signs that its leader Evangelos Venizelos has lost control. “It’s a very worrying situation with more and more deputies just not wanting to put their names to spending cuts that could send Greece spinning out of control,” said one insider. “It’s a war situation because Venizelos has made it clear that if MPs don’t endorse the measures they will be kicked out.”Analysts say there is growing evidence that deputies in Samaras’ centre-right New Democracy party will also break ranks – along with MPs from the small Democratic Left party who remain steadfast in their refusal to back labour reforms that the EU and IMF say are vital if Greece is to become more competitive. International creditors have signalled they want the coalition, which controls 176 seats, to pass the measures with at least 155 votes.“If revolt and defections continue, there is a real possibility the latest austerity measures … may not survive a vote,” said former Pasok MP Elena Panaritis. "If this occurs, both Pasok and the coalition government will most likely collapse.”
http://www.telegraph.co.uk/finance/debt-crisis-live/9649283/Debt-crisis-Disappointing-eurozone-PMI-data-dampens-recovery-live.html
11.33 Some more bad news coming out of Europe.
Small and medium-sized enterprises in the euro area expect a further narrowing of access to bank credit over the next six months, according to the the European Central Bank which published its survey of 7,514 euro area small-to-medium firms.
"For the coming six-month period, SMEs expect, on balance, a further deterioration of their access to bank loans and bank overdrafts," the central bank said in the findings of its survey.
About 15 percent of companies surveyed said they expect less access to bank loans between October and March compared with 7.0 percent in the first half of 2012.
SMEs are crucial employers in the eurozone economy and rely heavily on banks for financing.
The survey found that 22pc of companies perceived a deterioration in the availability of bank loans in the period from April to September, compared with 20pc in the preceding six months.
According to the survey, banks tightened the criteria that businesses must meet to take out loans in the third quarter of this year and said they would do so again in the fourth quarter.
10.59 More reaction to that PMI data in the eurozone this morning (see 09.20).
Ben May, Capital Economics
The situation in the core economies is worsening. Rather than the strength in the core dragging the periphery out of recession it appears more likely that the core will follow the periphery into recession.
Annalisa Piazza, Newedge Strategy.
All in all, the picture for the economy remains extremely sluggish. Further rate cuts would be fully justified by the current economic scenario.
10.45 Germany's finance minister Wolfgang Schaeuble has been talking to Reuters ahead of the G20 summit in Mexico this weekend.
He said he did not want the two-day meeting in Mexico City to concentrate exclusively on the eurozone crisis to the detriment of other urgent issues such as the "fiscal cliff" facing the United States and Japan's debt problems.
"The United States and Japan bear as great a responsibility for (ensuring stability) as we Europeans," he said.
"The G20 economies must decisively win back confidence with structural reforms and sustainable financial policies. This is the most important precondition for strengthening global economic conditions," Schaeuble said.
"Without consolidation and reforms we risk further loss of confidence and still less growth. No sustainable growth can be built on a mountain of debt," said the minister, known for his advocacy of fiscal rigour even in times of recession.
Schaeuble has taken a tough line on Greece and other weaker members of the eurozone during the region's three-year sovereign debt crisis, insisting they swallow austerity medicine even as their economies sink deeper into recession.
But he had warm words for Spain, saying it was on the "right path" and that there were signs - seen for example in falling wage costs and in the current account - that its economic imbalances were improving.
Schaeuble reiterated that Greece, still locked in difficult talks with its international creditors aimed at averting bankruptcy, must implement the tough measures it has promised.
09.30 Reaction to those PMI figures. Rob Dobson, senior economist at Markit, said:
The national data also paint a bleaker picture. Contractions were seen in all nations except Ireland, with the majority reporting faster rates of decline than in September. This is further evidence that the ongoing weakness of the periphery is being combined with hollowing out of the previously strong core of France and Germany.
News from the price front was also less than positive. Cost inflation has picked up sharply in recent months, which is providing an additional unwelcomed squeeze on margins at a time when weak demand and strong competition are constraining pricing power.
09.20 Eurozone PMI data is in and it shows that only Ireland saw an expansion in the sector, as the downturn not only deepened but widened as well.
Rates of contraction accelerated in Germany, Italy, Spain, Austria and Greece. Although the downturn in France eased slightly, it remained stronger than the euro area average. The main figures are:
Ireland 52.1 3-month high
Netherlands 48.9 3-month low
Germany 46.0 2-month low
Italy 45.5 2-month low
Austria 44.8 40-month low
France 43.7 2-month high
Spain 43.5 3-month low
Greece 41.0 4-month low
09.12 More PMI data coming in from Europe.
In Germany, the eurozone's largest economy, the PMI manufacturing data contracted for the eight month running, at 46 in October down from 47.4 in September.
Sector data showed that worsening operating conditions in October were concentrated in intermediate and investment goods, while consumer goods producers bucked the wider trend by recording a slight improvement over the month.
In the eurzone's second largest economy, PMI manufacturing data showed that the sector in France continued to contract but at a slower rate than last month, at 43.7 in October, up from 42.7 in September.
The data showed that the latest drop in foreign orders was sharp and the fastest since May 2009.
Manufacturing also contracted in Italy, where inflows of new work at Italian manufacturers fall for the seventeenth straight month. PMI fell to 45.5 in October, marginally down from 45.7 in September, marking a contraction for the fifteenth month in a row.
08.35 There is a lot of PMI data out today, and it's not expected to paint a pretty picture. Italy France, Germany and eurozone manufacturing data will be released a bit later this morning.
Spain's PMI manufacturing data is already out and it shows that output and new orders have declined at a sharp rate.
The ongoing Spanish economic crisis continued to impact negatively on the manufacturing sector in October. Production and new orders both fell at faster rates than in September and purchasing activity was reduced sharply.
The Purchasing Managers' Index fell to 43.5 in October, from 44.5 in the previous month, and signalled a further marked deterioration of operating conditions in the sector. The latest decline was the fastest in three months.
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