Tag: France

And it isn’t the first time.

The Franco-Belgian bank Dexia has become the first casualty of the 2011 banking crisis, with its Belgian arm being bought by the government and Belgium, France and Luxembourg providing a €90bn (£78bn) guarantee for its financing.

The bank, which specialises in local government financing and provides backing for more than 40 private finance initiative projects in the UK, ran into difficulties after its €3.4bn of exposure to Greece sparked concerns about its ability to absorb losses on the positions.

Other banks no longer wanted to lend it enough money to keep operating and it is expected to be the first of many to need bailing out during the renewed crisis in the sector. Alastair Ryan, analyst at UBS, reckoned eurozone governments could end up owning 40% of the sector if €200bn is needed to prop up banks – as estimated by the International Monetary Fund. Austrian bank Erste yesterday warned it would make a loss because of the eurozone crisis.

The embattled board of Dexia, which in 2008 received €6bn of assistance from France and Belgium, met on Sunday before it was announced on Monday that Belgium would pay €4bn for the operations in its country. Dexia shares resumed trading after last week’s suspension and fell almost 5%.

What Atrios said:

The CEO only earned a couple of million euros in each of the past couple of years. Worth every penny!

Repeating the same failed policies over and over expecting different results = Insanity

The robust economy of Germany is starting to feel the effects of the economic crisis of its partner nations in the Eurozone and is showing signs of drastic slowing

Growth in the German economy slowed sharply between April and June and was weaker at the start of the year than previously thought, figures show.

The (German) economy grew by just 0.1% in the quarter, according to figures from the national statistics office. Growth in the eurozone as a whole also slowed.

Germany had been driving the economic recovery in the eurozone.

The figures come as German Chancellor Angela Merkel and French President Nicolas Sarkozy begin crunch talks.

The two leaders are discussing ways to solve the eurozone debt crisis that has threatened to engulf Italy and Spain and has sparked turmoil on global stock markets.

Figures also released on Tuesday showed that eurozone economic growth slowed to 0.2% in the second quarter, down from 0.8% in the previous three months.

The slow down has had its effect on markets in Europe and early trading in the US:

The news led European indexes lower. Germany’s DAX fell 2.6 percent, the FTSE in Britain was 1.3 percent lower, and in France the CAC 40 was down 1.9 percent.

In early trading, the Dow Jones industrial average was down 80.68 points, or 0.70 percent, at 11,402.22. The Standard & Poor’s 500-stock index was down 11.02 points, or 0.91 percent, at 1,193.47, and the Nasdaq composite index was down 26.38 points, or 1.03 percent, at 2,528.82.

“German G.D.P. data is the catalyst this morning that got us off to a bad start,” said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vt.

The German chancellor, Angela Merkel, and President Nicolas Sarkozy of France were to meet later Tuesday to discuss measures to contain Europe’s fiscal crisis. A joint news conference was scheduled at noon E.D.T.

Another component of the down turn is the idea of issuing bonds backed by all Eurozone nations to ease the crisis has been poo-pooed by both German Chancellor Angela Merkel and French President Nicholas Sarkozy but they may have no other choice:

The euro bond concept is gaining traction among economists and other outside experts like George Soros, the billionaire investor, as a way of preventing borrowing costs for Italy and Spain from rising so much that the countries become insolvent, an event that could destroy the common currency.

Debt issued and backed by all 17 members of the euro zone, euro bond proponents say, would be regarded as ultrasafe by investors and could rival the market for United States Treasury securities. The weaker euro members would benefit from the good standing of countries like Germany or Finland and pay lower interest rates to borrow than if left to face investors on their own.

“It may well be in order to calm markets right now,” said Jakob von Weizsäcker, an economist for the German state of Thuringia who has proposed a way to structure euro bonds so that countries would be encouraged to reduce their debt.

On the “bright side”, there is Nouriel Roubini:

.Karl Marx was right that globalization, financial intermediation, and income redistribution could lead capitalism to self-destruct

Now a combination of high oil and commodity prices, turmoil in the Middle East, Japan’s earthquake and tsunami, eurozone debt crises, and America’s fiscal problems (and now its rating downgrade) have led to a massive increase in risk aversion. Economically, the United States, the eurozone, the United Kingdom, and Japan are all idling. Even fast-growing emerging markets (China, emerging Asia, and Latin America), and export-oriented economies that rely on these markets (Germany and resource-rich Australia), are experiencing sharp slowdowns.

Until last year, policymakers could always produce a new rabbit from their hat to reflate asset prices and trigger economic recovery. Fiscal stimulus, near-zero interest rates, two rounds of “quantitative easing,” ring-fencing of bad debt, and trillions of dollars in bailouts and liquidity provision for banks and financial institutions-officials tried them all. Now they have run out of rabbits.

Fiscal policy currently is a drag on economic growth in both the eurozone and the United Kingdom. Even in the United States, state and local governments, and now the federal government, are cutting expenditure and reducing transfer payments. Soon enough, they will be raising taxes.

The arrest of IMF President Dominique Strauss-Kahn in New York City on sexual assault charges puts on interesting twist on the French Presidential Elections. He is finished as head of the IMF and most certainly washed up with politics in France whether he is acquitted of these charges or not. The French like their sex but not necessarily on the front page of every newspaper around the world. This leaves a gaping hole for the Socialist Party (Parti Socialiste) of whom M. Strauss-Kahn, known as DSK in France,  was the leading candidate and was expected to defeat President Nicholas Sarkozy.

The French Presidential elections are held every 5 years in April, separately from the legislative election for the two chamber Parlement (Parliament). France does not have a two party system but a system where, though many political parties exist, only two parties have a chance of getting elected to major positions. Power, however, usually passes back and forth between the two stablest coalitions representing the left and the right.

Between now and next fall there will be primaries among the opposition parties where there are more than one declared candidate. The Front National’s (FN) primary was held January 11th, electing its president, Marine Le Pen, the youngest daughter of Jean-Marie Le Pen, former president of the FN, to be their candidate. The Parti Socialiste will hold their primary on June 28th with multiple candidates. Pres. Sarkozy, who is backed by Union Pour Un Mouvement Populaire (UMP), already has their endorsement.

The Socialist Party will now have to choose among several likely candidates who may have the popular support to take the Elysée Palace next year. The damage of the DSK affair may weaken the left, and the beneficiary will not be the ruling UMP party. It has been speculated that, both as a political “outsider” and as a woman in politics, Marine Le Pen could gain most from the scandal.

The other “dark horse” to watch is the former First Secretary of the Socialist Party and former partner of Ségolène Royal, François Hollande. In recent weeks, Mr Hollande has made strong gains in polls, with some analysts suggesting he could represent an even greater threat to the UMP president than the IMF boss did when he was popular. DSK’s was seen as an “elitist” whose policies resembled those of Pres. Sarkozy, while M. Hollande is more to the left and very much a “man of the people”. He still faces the primary with the current First Secretary of the Socialist Party, Martine Aubry, President of the Regional Council of Poitou-Charentes, Ségolène Royal (who lost to Sarkozy in 2007), President of the General Council of Saône-et-Loire and MP, Arnaud Montebourg and Essonne MP and Mayor of Évry, Manuel Valls.

I’ve simplified this a bit, the system is not all that complicated. French politics are really not all that different from American politics except that the French, as most Europeans, do not consider their politician’s private lives or religion a factor in considering who would be the best to lead the country. Feel free to ask questions, I’ll answer as best I can.

This is one more reason that the ADL is wrong about the Islamic Cultural Center near Ground Zero. You will not win their hearts and minds with intolerance.

Do you hear me, Dr. Dean?

The Mosque That Sheltered Jews

“Their children are like our own children”

“Yesterday at dawn, the Jews of Paris were arrested. The old, the women, and the children. In exile like ourselves, workers like ourselves. They are our brothers. Their children are like our own children. The one who encounters one of his children must give that child shelter and protection for as long as misfortune – or sorrow – lasts. Oh, man of my country, your heart is generous.”

– A tract read to immigrant Algerian workers in Paris, asking them to help shelter Jewish children.

by Annette Herskovits

There is in the center of Paris a handsome mosque with a tall slender minaret and lovely gardens. It was built in the 1920s, as an expression of gratitude from France for the over half-million Muslims from its African possessions who fought alongside the French in the 1914-1918 war. About 100,000 of them died in the trenches.

  During World War II, when the Germans occupied France, the mosque sheltered resistance fighters and North Africans who had escaped from German POW camps. (The French recruited 340,000 North African troops into the French army in 1939.) When the French police started rounding up Jews and delivering them to the German occupiers, the mosque sheltered Jews as well, most of them children.

  The Nazi program called for eliminating all Jews, of any age. More than 11,600 Jewish children under 16, including 2,000 younger than six, were deported from France to be murdered at camps in eastern Europe. Still, 83 percent of the Jewish children living in France in 1939 survived. Most were “hidden,” that is, given non-Jewish identities to keep them out of the authorities’ reach. This required massive help from the French people.

  Hiding children entailed a complex, extended organization. Rescuers had to get hold of the children, which often meant kidnapping them from detention centers or Jewish children’s homes in full view of the Nazi occupiers. They had to procure false papers, find shelter (in foster homes, boarding schools, convents), raise funds to pay for upkeep, and send the payments without attracting attention.

  They had to keep records, in code, of the children’s true and false names and whereabouts, bring the children to their hiding places in small groups, and visit them regularly to ascertain that they were well treated. Many who participated in this work – both Jews and non-Jews – perished.

  Innumerable French citizens provided aid of a less active kind: they remained silent, even when they suspected the children were fugitives. Many of the children were recent immigrants who spoke French with an accent and did not “look” French. A child might disclose his or her true name when surprised – or in defiance. Most at risk were very young children who needed repeated coaching.

Annette was one of those children.

h/t to valadon from a re-tweet and an article at Street Spirit