Mish's Global Economic Trend Analysis

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• Poll Shows 78% in Germany, 65% percent in France, 51% in Spain, 49% in Italy Want Greece to Exit Euro; Greek PM, Finance Minister Will Miss Summit Due to Illness; Permanent Nausea
• Mainstream Media Headline Silliness
• Capital Controls Hit Spain: Government Laws Prohibit Cash Transactions Over €2,500; Minimum Fine of €10,000 for Failure to Report Foreign Accounts

Poll Shows 78% in Germany, 65% percent in France, 51% in Spain, 49% in Italy Want Greece to Exit Euro; Greek PM, Finance Minister Will Miss Summit Due to Illness; Permanent Nausea Posted: 24 Jun 2012 10:12 PM PDT Reuters reports Greek PM, Finance Minister Will Miss Summit Due to Illness. Illness means both Greece's new prime minister and finance minister will miss an anxiously awaited summit of European leaders later this week and delayed a visit by the country's international lenders. According to a document prepared for the June 28-29 meeting, European leaders will discuss specific steps towards a cross-border banking union, closer fiscal integration and the possibility of a debt redemption fund. But Prime Minister Antonis Samaras underwent eye surgery on Saturday and Vassilis Rapanos is in hospital after suffering from nausea before he could be sworn in as finance minister. Instead, Greece's foreign minister and outgoing finance minister will attend the meeting to ask for the terms of the 130 billion euro ($162.96 billion) bailout to be loosened. Athens faces a stern test at the two-day EU summit, with euro zone paymaster Germany particularly resistant to giving Athens any leeway. German Finance Minister Wolfgang Schaeuble made his country's position all too clear in a bluntly worded interview on Sunday, telling Greece to stop asking for more help and instead move quickly to enact reform measures already agreed. "The most important task facing new prime minister Samaras is to enact the programme agreed upon quickly and without further delay instead of asking how much more others can do for Greece," Schaeuble, a close ally of Chancellor Angela Merkel, told Bild am Sonntag. His comments came as the paper carried a poll of 4,000 people showing 78 percent of Germans and 65 percent of French people wanted Greece to leave the euro zone, with 51 percent in Spain and 49 percent in Italy also backing a Greek exit. Permanent Nausea Having to face the Troika, Merkel, and German Finance Minister Wolfgang Schaeuble would be enough to give any Greek nausea. That statement particularly applies to the Greek finance minister. Expect the nausea to be permanent.  Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.

Mainstream Media Headline Silliness Posted: 24 Jun 2012 06:30 PM PDT I am frequently amused by mainstream media news headlines that come across my screen. For example, here are three consecutive headlines on Bloomberg in the span of 13 minutes that will show the silliness of it all. At 8:40 Bloomberg reported Japanese Stocks Advance on Optimism for Euro Growth. At 8:53 Bloomberg reported Japan Stocks Swing From Gains to Losses on Euro Growth Plan At 8:53 Bloomberg reported Asia Stocks Decline as Investors Await European Meeting At a bare minimum someone is too glued to the screen. Last Sunday, I admit I was glued to the screen following the Greek election (as was nearly every blogger). However, this moment-to-moment silliness is an every minute affair for Bloomberg. Is it really necessary to update everyone the moment stocks in Japan, the US, Europe, and everywhere else switch from gains to losses? Apparently they think it is, or they wouldn't do it. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.

Capital Controls Hit Spain: Government Laws Prohibit Cash Transactions Over €2,500; Minimum Fine of €10,000 for Failure to Report Foreign Accounts Posted: 24 Jun 2012 10:33 AM PDT If Spain is seeking further instability, a new law on financial transactions is sure to do just that. Via Google Translate, Spain passes a law limiting cash payments to 2,500 euros. Key Provisions Minimum fine of  €10,000 for taxpayers who do not report their foreign accounts. Fine of  €5,000 for each additional account Cash transactions greater than €2,500 prohibited Cash transaction restrictions apply to individuals and businesses The US requires reporting of foreign accounts as well, supposedly for the same reason, preventing tax fraud. In Spain however, consumers and businesses are already very nervous  (and rightfully so), of a Spain exit from the euro with a  return to the Spanish peseta accompanied by an immediate devaluation. In that context, these controls are only going to make consumers and businesses even more nervous, if not outright suspicious about what is going on. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.