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Chafing at insults, Germany loses patience with Greece - (www.reuters.com) Germany is running out of patience with throwing money into the "bottomless pit" of Greece's debt crisis and any lingering sympathy in Berlin is being undermined by anti-German slogans on the lips of politicians and austerity protesters in Athens. While officially hailing the Greek parliament's approval of the savings package required for a new 130 billion-euro bailout, Berlin signaled this would not automatically mean more aid, as the feeling grew that Greece should not be saved at any cost. With Finance Minister Wolfgang Schaeuble warning "Greek promises aren't enough for us anymore", and Economy Minister Philipp Roesler saying "fear of Day X (a Greek euro exit)" is fading, Germany seems to have tired of issuing threats that it would never follow through.
Economists Warn of Long-Term Perils in Rescue of Europe’s Banks - (www.nytimes.com) Few would begrudge Mario Draghi his boast last week that he and the European Central Bank had prevented a disastrous credit crisis by showering banks with cheap loans in December. But beneath the gratitude toward Mr. Draghi, the president of the central bank, lurks a fear that the easy money could simply be creating the conditions for another banking crisis several years from now. Because of the central bank’s cheap financing, some economists warn, sick banks now face less pressure to confront their problems — to clean out bad loans and other impaired assets, or even wind down operations if there is no hope of a turnaround. The European Central Bank, they say, could inadvertently spawn a cohort of “zombie banks,” burdened by nonperforming loans and assets that remain on the books, like the ones that helped make the 1990s a lost decade for Japan.
China's CIC brushes aside Merkel investment plea - (www.reuters.com) The head of China's $410 billion sovereign wealth fund CIC brushed aside a call by German Chancellor Angela Merkel to buy European government debt, saying such investments were "difficult" for long-term investors. In comments ahead of a China-EU summit starting on Tuesday, Lou Jiwei, chairman of China Investment Corp (CIC), said any fresh injection of funds into Europe would be in industrial and other real assets, not government bonds. His comments struck a sharper tone than a commentary in the Communist Party mouthpiece, the People's Daily, which sought to reassure the European Union that China had no intention to "buy up Europe."
Violence offers glimpse of Greece's reform challenge - (www.reuters.com) Europe gave Greece until Wednesday to convince skeptical international creditors that it would stick to the punishing terms of a multi-billion-euro rescue package, endorsed by parliament as rioters torched downtown Athens. Lawmakers backed drastic cuts in wages, pensions and jobs on Sunday as the price of a 130 billion euro ($170 billion) bailout by the European Union and International Monetary Fund to avert a messy default that would send shockwaves through the euro zone. Scenes of running battles between police and rioters and flames engulfing cinemas, shops and banks underscored a sense of deepening turmoil in the country after more than four years of recession and two of punishing austerity.
Stunning Pictures Of The Disaster Zone In Greece – (www.businessinsider.com) Massive riots and their fallout. Protests got out of control Sunday and Monday as Greek lawmakers voted on a new round of grossly unpopular austerity measures. But even as leaders make new promises to curb government spending and get the country's economy back on track, Greece is beginning to look more and more like a war zone. According to Bloomberg, Greek police said in a statement that 45 shops were set on fire, 67 people were arrested, 75 people were detained, and 68 police officers were hospitalized during the protests.
Greece Bailout Faces European Finance Chiefs After Parliamentary Approval - (www.bloomberg.com)
Carry Trade Rallies Like ’09 as Volatility Ebbs While Headlines Blare Iran - (www.bloomberg.com)
Draghi $158B Free Lunch Boosts Bank Profits - (www.bloomberg.com)
China CIC says European govt bonds not ideal investment - (www.reuters.com)
Papademos Has Votes to Win Austerity Motion - (www.bloomberg.com)
China May Need to Fine-Tune Economic Policy This Quarter, Premier Wen Says - (www.bloomberg.com)
Europe Job Losses Accelerate With AstraZeneca-to-PepsiCo Firing Employees - (www.bloomberg.com)
China tells banks to roll over local government loans: FT - (www.reuters.com)
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