It was on October 14th in "Timmy Talks" that I wrote the following.
While Europe has bought itself time, and continues to give more promises of grand plans for which there is no evidence, Geithner provided no reasons to make an onlooker believe that such a plan really exists. Rather, he seemed to indicate how undefined the plan is as it currently stands. Even if we don't have influence over the IMF that we fund, it would seem reasonable to me that the secretary of the treasury might have some concept of what is going on there. Perhaps others feel as uncomfortable as I do when watching Geithner, which makes me wonder if everyone completely missed how disconcerting that interview was.
On that day, I decided to listen to Tim Geithner's monotonous answers, in hopes to find clues about the future in Europe. Today, it seems that that whole interview was nonsense. This morning, Angela Merkel stated that at the G-20 was unable to come to any understanding as to how the IMF would be used to fund the EFSF. Of course this has a tint of political posturing, but think about what this means. As previously mentioned, under German law, the EFSF cannot be funded by ECB money printing. That leaves the IMF, the private sector and China to help. China isn't rushing to help... why would they? If i were China I'd rather wait until desperation time when they will get more in return for providing funding...China isn't out there to make friends. O wait... Euro countries could pool their own money for the bailout...ha! If we don't see any progress on the IMF front, then we may have to see the situation become far more dire before we see any other potential financiers of the EFSF step in.
Enjoy the weekend,
Ben
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