Monday, 24 October 2011

Sarko’s Hissy Fit

According to the press, President Sarkozy has been crying more than his new born over Britain having a say in the EU bailout plan. Now this could be leaked to prop up Cameron over the latest Referendum vote – showing him as stronger than he is in order to fend off his back benchers. Fully agreed with his fellow European politicians who don’t want to deal with Britain buggering off on top of all their problems.

Alternatively it could actually be true. And a hissy fit on this scale portends a greater threat. The Vichy can be prickly at the best of times – Viz Sarkozy’s G20 gloating about “Les Anglo Saxons”. But to loose it in this way suggests he’s seen the real state of the French Banks balance sheets and is desperate. Their exposure to Greek debt is bad enough, but un grande hissy fit on this scale portends to even worse news round the corner. Their short term borrowing requirements are around 1.6Tn Euros. If you own shares in Soc Gen, Credit Agricole or BNP Paribas now may be a good time to cut your losses, ditto if you own French insurers.

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