Why we could see a cold, cold winter. Just another couple of reasons. Like we needed more.
In spite of the fact that consumer confidence, in Europe seems to have made somewhat of a comeback, there are two things that are looming. One relates to banking, the other is political. They are:
Troika is coming. A review of Greece’s reform process is scheduled. The European Central Banksters, International Monetary Fun
d and European P-Union – dubbed the Troika – are due to arrive in Athens sometime next month to assess the pace of reforms.
If they are dissatisfied with Prime Minister Samaras’ progress, “it could bring the question of a further debt restructuring back to the fore, and raise concerns over similar steps that proved necessary for Cyprus, and that ought to go over really good.
Athens already received a debt write-down of over 100 billion euros in 2012, the largest ever sovereign-debt haircut. If a second attempt is made, fears of a spillover effect could lead to a spike in peripheral bond-yields, which have fallen recently due to positive growth data.
Get ready for more civil unrest.
October will also see a vote in Italy’s senate on the possible ban of former Prime Minister Silvio Berlusconi from public office, which some argue could pose a threat to the stability of the ruling coalition and revive national political turbulence following the formation of a new government in April.
.Italy could be in deep trouble, too! The Italian Treasury sold 3 billion euros (3.9 billion dollars) of ten-year bonds on Monday morning, at 3.94 percent. That compare with a yield of 4.66 percent it paid at an auction just one month ago.
If the government fails, look for even more civil unrest.
Tie in a bombing campaign in Syria, which will involve the French, and who know? As that expands, which it certainly will, expect the contagion to begin affecting the North of Europe.
Will this be the two things that ‘tip the scales’? They certainly bear watching.
October is shaping up to be one interesting month. Are you ready?