22 May



Posted by: Kimberly Walker


Merkel’s Bluff

by Benjamin Tal

Recent polls from Greece are showing the anti-austerity Syriza party capturing around 22% of popular

support—up by five points from the election tally. And markets are not liking it. The iTraxx Europe Crossover

Index widened to the 740 basis point zone, a level close to that seen in late 2011 when fears about the

Eurozone collapsing under the weight of peripheral countries’ debts were highest. Perhaps as telling, is the fact

that the stock price of the world’s largest commercial currency printer surged by 10% in the past three weeks

to its highest level in more than three years.

If you live in Greece, what do you do after reading the morning paper? You go…no, you run…to your local

bank to withdraw your euro-dominated deposits before they turn into worthless drachma deposits. So the

surprise is not that Greek households and businesses withdrew close to €1.3 billion over the past week. The

surprise is that it was only €1.3 billion.

Maybe part of it is the belief by many in Greece that Syriza can have its cake and eat it too. After all, Syriza’s

dogma of a middle way between austerity and eviction is being encouraged by Europe’s shifting political

mood. In France, Italy, the Netherlands, and to some extent even in Germany, voters and politicians are

increasingly critical of the effects of austerity in a downturn. The party builds on the realization that although

Greece accounts for only 2% of the euro area’s economic output, its exit could disintegrate a system of

monetary union designed to be irreversible.

In many ways, Syriza is trying to call Merkel’s bluff. Their thesis is that the hawkish Chancellor and the

Eurozone as a whole are facing an asymmetrical risk. A Greek exit is a strategy with a degree of risk. No one

has tried breaking up a monetary union before. There is absolutely no way to know in advance whether the

crisis spreading to other countries can be controlled. Such a scenario could trigger a default-inducing surge in

bond yields, capital flight that might spread to other indebted countries and a resultant series of bank runs—

leading to increased capital controls on cash withdrawals and transfers, alongside huge draws on ECB credit to

keep the banks from collapsing.

At the same time, Germany will have to accept significant indirect public claims on Italy and Spain, or simply

admit defeat and kill the euro. Against this gigantic potential cost, the money involved in a “Marshall Plan”

type approach that will buy Greece and the zone some time is a bargain.

And time is key. It is impossible to predict how things will develop after the June 17th election. The betting on

this one comes down to whether one thinks European officials will stick with their principles or act in their own

best interests. While the odds of a Grexit have risen, we are not there yet. Simple math might convince

Germany to close its eyes and buy Greece, Italy and Spain more time—at least until it gets all its ducks in a row

for a more orderly Greek exit. For now, in this game of chicken, Merkel might blink first.

1 May

10th Annual Garage Sale South Surrey/White Rock


Posted by: Kimberly Walker

10th Annual Garage Sale Sponsored

By Dave, Cindy, and Amanda Walker

604-889-5004 or 604-531-1111

HomeLife Benchmark Realty and Dominion Lending Centres

Saturday, May 5 at 9:00 AM – Specialty Items Marked Below

Elgin Park: Off 144 Street, turn west onto 30A Avenue

1. 14322 30A Avenue – moving sale

Chantrell Park: Off 140 Street, turn west onto 22 Avenue, then right onto 139A Street,

loop around left to 138A Street

1. 2289 138A Street

– Loop back onto 20A Avenue and follow the road along to 138 Street

1. 2099 138 Street – furniture, sporting goods, children’s toys

Bell Park Subdivision: Off 140 Street head west onto 19A Avenue and simply follow the

addresses looping left around the circle:

1. 13868 19A Avenue – multi family sale, kids items, clothes, books

2. 13839 19A Avenue – toys, patio furniture, stroller, dvds, baby items

3. 13836 19A Avenue – kids items, books, furniture, home decor

4. 13824 19A Avenue

5. 13816 19A Avenue – clothes, shoes, sports items

6. 13669 19A Avenue – snowshoes, armoire

7. 13672 19 Avenue – estate sale including a sofa chair, an exercise bike, and a variety of other odds and sods

8. 1874 136A Street

9. 1851 136A Street

10. 1823 136A Street – garden items, furniture

11. 13676 18A Avenue – lamps

12. 13701 18A Avenue

13. 13761 18A Avenue

14. 13768 18A Avenue

15. 13781 18A Avenue – children’s toys and books, tools

16. 13885 18A Avenue – shrubs, perennials, electric lawn mower

17. 1944 139A Street

Bell Park South- Head west on 16 Avenue. Back lane access

1. 13849 16 Avenue – furniture; oak bedroom suite, roll top, chairs, microwave stand, bookcase, love seat.

electronics; 27” sony tv and stand, pvr, bluetooth

Amble Greene Subdivision: Off 16 Avenue, head north on 136 Street. West onto 18th Ave. loop to 17 Avenue

1. 13499 17 Avenue

– Off 136 Street

1. 13508 19 Avenue – baby items, children’s toys, furniture

– Off 20 Avenue and 129 Street

1. 12874 19A Avenue – brand name kitchen appliances, solid oak cabinetry, sinks/taps, studio sized pine harvest

kitchen table/pair of maple windsor arm chairs, pair of coordinating loveseats, metal wall art

Ocean Park Terrace – Off 24 Avenue turn south onto 129B Street

1. 2286 129B Street – kids toys, kids items, furniture

Not intended to solicit anyone under contract. Garage Sale Participants and Buyers are at their own risk. No liability offered