How to tell if you are under attack when having schizophrenia

“How do you determine reality? It is when you hit a stimulus and you get a response, then that is real, not an illusion. – Contributed by Oogle. ” 

How to tell if you are under attack when having schizophrenia

1) When hearing voices, the voices may be from a group of people, but what they are saying does not make any sense, like noises when you cannot comprehend, this is normal signs of a schizophernia attack.
2) Likewise when you listen from a news broadcast from the TV, you think they are talking about you, or trying to harm you, this is a normal sign of a schizophenia attack.
3) When voices start to make sense and start commanding you to do things like to hurt someone or kill someone, this is not normal, you are under attack from an unknown source.
4) Likewise sublimal messages from a broadcast source like TV and radio can be utilised to trigger an attack when the person is programme to act on hearing very specific keywords.
5) Therefore it is important to keep a patient under observation in a soundproof room where there is no TV or radio or computer, where if there is a ceiling fan it must not be able to amplify sound waves, even the functions of an aircon should not be able to amplify sound waves. In this special room, the doctor must keep the patient under CCTV observation to determine his behavior, to find out if the influence is due to mental illness or under an attack, if the patient is violent or may harm himself, you must sedate the patient but not treat the patient until you find out if the illness is real or not, cause giving the wrong medication will worsen the condition, the very most the patient must be restraint.
6) Observation is the best method within 48 hours when a patient is warded to determine his condition and behavior without medication unless you are very familar with his case history. You can sedate or restraint but do not give medication unless you are very sure of his diagnosis.
7) When you determined that the patient is under attack you must restraint him at all times. He must be isolated from the rest of other patients. Medications is no use and cannot treat his condition, the patient will not be able to tell what is real or not. Normally the attack will not be long term so within 7 days he will snap out of it. If the attack cause him not to be able to sleep you must prescribe sleeping pills or prolong without sleep will worsen his condition. Prolong attack by hearing voices commanding the person will cause “conditioning” when it will be harder for him to be programmed, so normally the attacker will not do it long term, so I believe the sickness is caused.

I write all these based on my experience to help others so that doctors can determine the diagnosis of schizophrenia to give the correct medication when appropriate.
– Contributed by Oogle.

EU’s ECB needs to link closely with World Bank/IMF, a bank union still cannot resolve the massive funds required during a crisis

Posted: 31 May 2012 2105 hrs
BRUSSELS: The president of the European Central Bank, Mario Draghi, called on Thursday for eurozone leaders to lay out a vision for the future of the embattled bloc, as its current set-up is “unsustainable.”
“The next step … is basically for our leaders to clarify what is the vision for a certain number of years from now. How is the euro going to look … in a certain number of years from now,” Draghi said in the European Parliament.
“I think the sooner this is specified, the better it is,” Draghi added, speaking in his capacity as head of the European Systemic Risk Board.
The ECB cannot “fill the vacuum” left by EU governments in the fields of structural reforms or governance, Draghi insisted.
Nor can the central bank tackle the problem of a lack of capital and risk aversion currently hampering the markets, he stressed.
One of the steps that could contribute to the vision Draghi called for was a “banking union” with greater centralisation of oversight, he said.
On Wednesday, the president of the European Commission, Jose Manuel Barroso said the “building blocks” of a full-fledged eurozone would now include “a banking union with integrated financial supervision and single deposit guarantee scheme.”
Draghi compared the troubled eurozone to a swimmer struggling to cross a river in fog.
“He or she continues fighting against the current but doesn’t see the other side of the river because it is foggy … we need to dispel this fog,” he said.
That is the best contribution that countries can make to lowering borrowing costs and bolstering growth in the eurozone, he said.
He said the configuration of the eurozone “has been shown to be unsustainable unless further steps are being undertaken.”
“The financial crisis that started four years ago, four and a half years ago, has changed our risk perception in a substantial way and it has increased, heightened our risk aversion in a dramatic way,” he said.
While there has been “renewed bouts of volatility and uncertainty” on the markets recently, the turbulence is “not at the same levels reached in November 2011,” he judged.
Draghi also announced that four Greek banks suspended from the ECB cash taps earlier this month had been readmitted.
“The recapitalisation has now taken place, so the four Greek banks have been readmitted to the monetary policy operations,” he said.
Asked about possible bank runs in the event of break up of the eurozone, Draghi pledged: “The ECB will continue lending to solvent banks. And will keep the liquidity lines active and alive with solvent banks.”

– AFP/ir
ECB can start to print it’s own money, but just by printing money and increasing the supply will cause massive inflation which will devalue it’s money, unless there is a corresponding input to balance the output, one good example is what the FED is doing, if it’s currency is not backed by gold, you will see the value of it’s currency dropping, only at the highest level of World Bank/IMF can money be printed without a care of the world, because the is a corresponding technological advancement and innovations which will guarantee income for many years to come, but again there is a limit, unless there is a perpetual unlimited innovations of income. UN does not need to print it’s own bills, it can easily request for US$, ECB$ or RMB$ from the respective countries, by exchanging for guarantees with coupons, which will cover all the cost involved with a small interest rate, from the World Bank/IMF, which is backed by solid income, and all member countries, so there is no tendency of default. Controls must be in place to prevent the unauthorised printing of money which will devalue the currency, but most countries will not jeoperdise their own interests. World bank/IMF will therefore act as a lender of last resort to support the central banks and governments of the world, charging an interest even lower than the interbank rate, as the volume of money involved is normally very large, and it will help UN with an income to defray cost of borrowings.
– Contributed by Oogle.

Epithelial–mesenchymal transition : The formation of birth

Epithelial–mesenchymal transition or transformation (EMT) is a hypothesized program of development of biological cells characterized by loss of cell adhesion, repression of E-cadherin expression, and increased cell mobility. EMT may be essential for numerous developmental processes including mesoderm formation and neural tube formation.
EMT was first recognized as a feature of embryogenesis, which is vital for morphogenesis during embryonic development.[1] In vertebrates, epithelium and mesenchyme are the basic tissue phenotypes. The EMT can be defined as a process that produces complete loss of epithelial traits by the former epithelial cells accompanied by total acquisition of mesenchymal characteristics, such as vimentin, myosin, invasive motility, and so on.[2] Although EMT evolved among several other animals, the remarkable ability of developing embryos to change one tissue type to the other reached its peak in the vertebrates. EMT takes place during the construction of the vertebral column out of the extracellular matrix, which is to be synthesized by fibroblasts and osteoblasts that encircle the neural tube. The major source of these cells are sclerotome and somite mesenchyme as well as primitive streak. Mesenchymal morphology allows the cells to travel to specific targets in the embryo, where they differentiate and/or induce differentiation of other cells.
In the lower chordates, gastrulation is a totally epithelial event. The amphibians form a blastopore through which presumptive mesodermal and endodermal epithelia invaginate. Amphioxus forms an epithelial neural tube and dorsal notochord but does not have the EMT potential of the primitive streak. In higher chordates, the mesenchyme originated out of the primitive streak migrates anteriorly to form the somites and participate with neural crest mesenchyme in formation of the heart mesoderm. Mesenchymal cells from the primitive streak participate also in the formation of many epithelial mesodermal organs, such as notochord as well as somites. This process involves mesenchymal–epithelial transition.[2]
One more source of embryonic mesenchyme is the dorsal neural tube epithelium. It forms the neural crest and considerable amounts of craniofacial crest mesenchyme which forms connective tissue that contributes to the head and face in the vertebrate.[2]

Several oncogenic pathways (peptide growth factors, Src, Ras, Ets, integrin, Wnt/beta-catenin and Notch) may induce EMT. In particular, Ras-MAPK has been shown to activate two related transcription factors known as Snail and Slug. Both of these proteins are transcriptional repressors of E-cadherin and their expression induces EMT. Interestingly, Slug triggers the steps of desmosomal disruption, cell spreading, and partial separation at cell–cell borders, which comprise the first and necessary phase of the EMT process. On the other hand, Slug cannot trigger the second phase,[3] which includes the induction of cell motility, repression of the cytokeratin expression, and activation of vimentin expression.[4]
Snail and Slug are known to regulate the expression of isoforms of another transcription factor p63 that is required for proper development of epithelial structures.[5] The altered expresssion of p63 isoforms reduced cell–cell adhesion and increased the migratory properties of cancer cells. The p63 factor is involved in inhibiting EMT and reduction of certain p63 isoforms may be important in the development of epithelial cancers[6]. Some of them are known to regulate the expression of cytokeratins.[7]
Recently, activation of the phosphatidylinositol 3′ kinase (PI3K)/AKT axis is emerging as a central feature of EMT.
Twist, another transcription factor, has also been shown to possibly induce EMT, and is also implicated in the regulation of metastasis. Expression of FOXC2, an important player during embryonic development has been shown to induce EMT and regulate metastasis. Moreover, expression of FOXC2 is induced when epithelial cells undergo EMT by Snail, Twist, Goosecoid, and TGF-beta 1.
EMT may be induced by type I collagen, mediated by integrin α1β2. As cells assume a more mesenchymal phenotype, expression of molecules such as osteopontin and type 1 collagen are increased.[8]

Initiation of metastasis involves invasion, which has many phenotypic similarities to EMT, including a loss of cell-cell adhesion mediated by E-cadherin repression and an increase in cell mobility. Loss of certain genes (e.g. Hedgehog family) has been shown to activate integrin, Wnt, and possibly other signaling pathways, leading to alterations in cell-cell adhesion.
EMT is a characteristic feature of cells undergoing proliferation. Cells expanding in-vitro, like beta cells- and epithelial phenotype, of the pancreas, assume mesenchymal phenotype. Similarly cultured hepatocytes and kidney tubular epithelial cells undergo dedifferentiation in a process similar to an EMT event. In-vivo (via KO or under cancer-inducing scenarios), EMT has been shown to occur in proliferating cells (e.g. stomach epithelium) when pathways known to be involved with EMT are altered.
Nicotine may contribute to EMT[9][1]. Molecular factors that participate in EMT-related processes include also Hedgehog, nuclear factor-kappaB and Activating Transcription Factor 2.[10][11][12]
The concept of epithelial–mesenchymal transition (EMT) was also demonstrated to be useful in generation of endocrine progenitor cells from human pancreatic islets.[13][14] However, there has been significant debate in understanding the proliferative potential of “terminally” differentiated cells, such as the insulin-producing β-cells. The entire debate started after the initial presentation of EMT in cadaveric human islets.[15] These investigators proposed that human islet-derived progenitor cells (hIPCs) are better precursors since β-cell progeny in these hIPCs inherit epigenetic marks that define an active insulin promoter region. Although similar observations in single cells obtained from human islets[16] were also reported shortly after this initial presentation, the entire concept was strongly opposed by a series of articles.[17][18][19][20] These researchers used genetic lineage tracing system to label β-cells and convincingly demonstrate that labelled (mouse) cells do not exist in the expanded (proliferating) cultures. Two of these articles[21][22] noted that labelled β-cells de-differentiate to a mesenchymal-like phenotype in vitro, but fail to proliferate. Overall, these articles, suggested that (mouse) β-cells do not proliferate /undergo epithelial-mesenchymal transition (EMT) in vitro. Since previous studies in human islets lacked lineage-tracing analysis, these findings from irreversibly tagged beta cells in mice were extrapolated to human islets. It became a consensus that terminally differentiated islet β-cells do not proliferate in vitro and the mesenchymal population seen in vitro was proposed to arise from rapid proliferation of pre-existing mesenchymal cells. However, the group of Shimon Efrat, used a dual lentiviral system to irreversibly label human β-cells in vitro,[23] demonstrating that adult human islet β-cells undergo EMT[24] and proliferate in vitro. Following this publication, the group of Anandwardhan Hardikar published data confirming these findings in human fetal pancreatic insulin-producing cells.[25] These authors used multiple approaches, including immunostaining and FISH, single cell PCR, clonal expansion analysis, assessment of heritable marks of insulin-promoter region and thymidine-analog based lineage tracing analysis to demonstrate proliferation of human fetal insulin-producing cells.[26] Furthermore, the same group also demonstrated that members of the miR-30 family of microRNAs (a class of non-codingRNAs) are involved in regulation of EMT in human islets, mainly due to the genomic (intronic) location of members of this family.[27] These studies from the group of Efrat and Hardikar now confirm that human pancreatic insulin-producing cells proliferate and undergo EMT in vitro. These groups have also indicated that mesenchymal cells derived from pancreatic islets can undergo reverse EMT or mesenchymal–epithelial transition (MET) to generate islet-like cell aggregates. Although such islet-like aggregates show very low levels of insulin, the concept of generating progenitors from insulin-producing cells by EMT may help in generation of lineage-committed islet progenitor cells. Such cells may have potential for replacement therapy in diabetes.

North Korea’s Nuclear ambition is just a bargaining tool

North Korea’s Nuclear ambition is just a bargaining tool

They have problems with food to feed it’s nation, they do not even have basic technology penetration for mobile phones, so they wish to have all these, to be as technologically advanced as any nations, so if can meet their demands, they will embark on the road to democracy. Their nuclear ambition is so backward it will not even post a threat, their rocket technology is in the eighties and nineties, but they are suffering so much due to the world’s isolation, and they have an iron will not to conform or give in to threats, so if you understand their silent language, you could easily draw them into the road of democracy. As such do not use threats but candies to get a response, and do not use the wrong parties, to draw them to the negotiating table, and there will be room for progress.
So if the UN is willing to talk to North Korea instead of the Six Parties, I am sure with an aid package without conditions, N. Korea will definitely listen. To help create jobs and industries, so that they can afford to be independent on their own, with their own money to buy what they need, and I can help fix all their problems.
– Contributed by Oogle.
Posted: 31 May 2012 1050 hrs
SEOUL: North Korea’s new constitution proclaims its status as a nuclear-armed nation, complicating international efforts to persuade Pyongyang to abandon atomic weapons, analysts said Thursday.
An official website seen late Wednesday released the text of the constitution following its revision during a parliamentary session on April 13.
“National Defence Commission chairman Kim Jong-Il turned our fatherland into an invincible state of political ideology, a nuclear-armed state and an indomitable military power, paving the ground for the construction of a strong and prosperous nation,” says part of the preamble.
The text was carried by the “Naenara” (My Nation) website.
The previous constitution, last revised on April 9, 2010, did not carry the term “nuclear-armed state”.
Following Kim Jong-Il’s death last December, the country revised the charter to consecrate achievements of the late leader, who was succeeded by his son Kim Jong-Un.
The North has been developing nuclear weapons for decades. Its official position has been that it needs them for self-defence against a US nuclear threat, but that it is willing in principle to scrap the atomic weaponry.
Under a September 2005 deal reached during six-nation negotiations, Pyongyang agreed to dismantle its nuclear programmes in return for economic and diplomatic benefits and security guarantees.
But six-party talks on implementing the deal have been stalled since December 2008. The North has staged two nuclear tests, in 2006 and 2009.
“This makes it clear that the North has little intention of giving up nuclear programmes under any circumstances,” Cheon Sung-Whun of the state Korea Institute for National Unification told AFP.
“If there is a demand at the negotiation table to give up nuclear weapons, the North Koreans would say it would be a breach of the constitution,” he said.
North Korea has long been in confrontation with the United States and its allies over its nuclear and missile programmes.
Its April 13 long-range rocket launch, purportedly a peaceful mission to put a satellite into orbit, further dimmed prospects for a diplomatic settlement.
The revised constitution “is certainly bad news for participants in the six-party talks”, said Professor Kim Keun-Sik at Kyungnam University in Changwon.
“It will make it harder to persuade the North to give up nuclear weapons through diplomacy.”
But Kim cautioned against reading too much into what was intended as part of a eulogy for Kim Jong-Il.
“The North has been touting its nuclear status as one of the key achievements accredited to the late leader and the new constitution factors this in,” he said.
“This can hardly be interpreted as a message that it will stick to its nuclear weapons no matter what.”
Kim also said the North’s constitution can easily be amended once its ruler decides to do so, noting it was revised twice in as many years.
The six-party talks which began in 2003 are chaired by China and also include the two Koreas, the United States, Russia and Japan.

– AFP/wm

The potential of creating Biodiesel will double it’s IPO price

Thursday, May 31, 2012

KUALA LUMPUR – Malaysian Prime Minister Najib Razak will unveil on Thursday the US$3 billion (S$3.7 billion) listing of palm oil giant Felda Global, paving the way for Asia’s largest initial public offering so far this year that could also lift his chances of winning a national election.
The 58-year-old leader will release the prospectus for the IPO of Felda Global Ventures Holdings (FGVH) at an event in the capital Kuala Lumpur that will be as much political theatre as a financial announcement.
The world’s largest IPO this year after Facebook has already attracted a strong cast of cornerstone investors including French agribusiness giant Louis Dreyfus, Fidelity Investments and Middle Eastern sovereign fund Qatar Holding LLC.
That partly reflects strong investor interest in Southeast Asia, which has seen a burst of IPOs since the start of the year despite the protracted euro zone debt crisis, the debacle over Facebook’s market debut and shaky IPO markets elsewhere in Asia.
The strong support from cornerstones, which are taking up about two-thirds of the IPO shares, and from Malaysian states in which the plantations are located, means the deal is unlikely to suffer the same fate as the social networking giant or the flurry of Hong Kong share sales that have been shelved recently.
There is also significant political capital invested in the sale, which is set to deliver a windfall totalling more than US$500 million to tens of thousands of farmers in what is likely to be an election year.
“So far, there has not been a single major IPO being pulled in Malaysia last year and this year,” said Alan Tan, fund manager for Asian equities at Lion Global Investors in Singapore. “Felda is also government-owned, so the chance of it being successfully listed is quite high.”
London luxury jeweller Graff Diamonds is the latest company to pull its planned $1 billion Hong Kong offering, the fourth major IPO to be called off in Asia in a week as stock markets slide.
MAJOR NEW PLAYER Felda Global, which should have a market capitalisation of around 17 billion ringgit ($5.4 billion), aims to become a major new player in global commodities and plans to use the IPO proceeds to expand in Southeast Asia and Africa.
It is targeting up to US$3.4 billion from the IPO based on a price range of 4 to 4.65 ringgit.
The government’s Federal Land Development Authority (FELDA), the parent firm of FGVH, has more than 880,000 hectares (2.2 million acres) of plantation. That puts it among the world’s largest producers of the palm oil that is used in everyday products from soap to cooking oil and which has tripled in price in the past decade.
The listing of FGVH clubs together refineries, plantation management companies and logistics firms as Malaysia looks to build an agribusiness to rival Singapore’s Wilmar International . For the about 1 million FELDA farmers and family members, or settlers as they are known, the IPO is the latest step in a remarkable transformation over a few decades from landless poor to landholders and now shareholders in a global conglomerate.
Najib’s father, former Prime Minister Abdul Razak, started FELDA in the 1950s, handing out land to Malays to fight poverty and giving them a crucial role in making Malaysia the world’s second-largest palm oil producer.

“The listing marks a new era and is a step forward from my father’s dream,” Najib told a gathering of about 10,000 farmers this month at an oil palm estate in his home state of Pahang.
The farmers hold the key to a likely electoral dividend for Najib, whose ruling coalition faces a tough battle against a resurgent opposition in a national election that the prime minister must call by next March but which is expected sooner.
About a fifth of the proceeds from selling 2.19 billion shares will be handed out to 112,635 landholders, giving them a combined windfall of US$553 million or nearly US$5,000 each.
That is more than the annual minimum salary, adding to the economic feel-good factor that Najib and his ruling UMNO party are trying generate ahead of the polls through a series of social handouts.
Election dividend the Felda 
 settlers form the bulk of the vote in 52 of Malaysia’s 222 parliamentary seats, including Najib’s base in Pahang state, and they are ethnic Malays – a core support group that has been drifting away from the National Front coalition.
“Najib is trying to ensure that the opposition doesn’t make inroads into the rural sector,” said Khor Yu Leng, an independent analyst who studies the agriculture sector.
But she said the glow could wear off for the farmers in the coming years as they lose some of the benefits of government patronage and become more tied to global markets.
Sources told Reuters that FGVH has started offering its IPO shares to indigenous “bumiputras” at an indicative price of 4.65 ringgit per share.
Bankers involved in the deal say the final retail price that Najib will announce on Thursday is 4.55 ringgit per share or a 2 per cent discount to the institutional price to be determined, whichever is lower.
Bumiputra, meaning “sons of the soil” in the Malay language, refers to the majority ethnic Malays and other indigenous people who benefit from the decades-old affirmative action policy that favours them in housing, education and business.
Analysts have said Felda Global’s aging palm oil trees, which need replanting, could be a drag on its future earnings and profitability. About 53 per cent of the company’s 323,587 ha of plantations estates in Malaysia are more than 21 years old, according to its draft prospectus filed on April 27.
In contrast, close to 72 per cent of Indonesian plantation firm Bumitama Agri Ltd’s 119,162 ha of planted area are made up of immature and young trees.

RIM should concentrate on it’s encrypted networks to boost profits

TORONTO/NEW YORK | Wed May 30, 2012 4:42pm EDT

(Reuters) – BlackBerry maker Research In Motion Ltd may be running out of options as it struggles to turn around its slumping fortunes with the help of a coterie of investment bankers.
The bankers – including leading M&A specialists from Royal Bank of Canada and J.P. Morgan – will explore options as drastic as an outright sale, one of the alternatives that RIM seems determined to avoid.
But analysts and investors doubt that anyone is ready to buy the whole company at this time, despite a price that looks tantalizingly cheap on paper. Interest in RIM looks slim to nil, two sources close to the matter said.
RIM’s market capitalization is now $5.5 billion, down from $84 billion at the company’s peak in 2008. It has $2 billion in cash, no debt and patents that experts say could be worth $2.5 billion.
“You are not going to sell RIM whole,” said Charter Equity analyst Edward Snyder, who has covered RIM since its Nasdaq initial public offering in 1999. “The biggest problem RIM faces is that it’s a very illiquid market in suitors for its phone business.”
“There’s very few companies that could exploit RIM’s (hardware) assets to make a go of it. Those who can are already beating the pants off RIM.”
RIM virtually invented on-your-hip email with its first BlackBerry device in 1999 and enjoyed almost a decade as a market darling, with quarter after quarter of soaring sales.
But it has hemorrhaged market share in the last few years, fading almost to irrelevance in a market dominated by Apple Inc’s iPhone and devices from the likes of Samsung Electronics Co Ltd using Google Inc’s Android software.
RIM shares sank to a eight-year low of just over $10 on Wednesday after the company said the day before that it expected to report an operating loss this quarter, its first in seven years
The company also said “significant” job cuts were on the way. Two sources told Reuters last week that up to 6,000 of RIM’s 16,500 jobs could go by early next year.
Breaking up the company for a piecemeal sale is also a possibility, but an unlikely one given the complexity of such an action and management’s reluctance to contemplate such a move.
A leveraged buyout may be a more likely outcome, although it also faces a number of obstacles. Private equity firms have circled RIM over the past two years and have tried without success to figure out ways to buy the company.
Another option is to shut down the device business, admitting that the BlackBerry cannot compete with Apple and Android, to focus on RIM’s secure network operations and its patented technology.
But the sources said closing the device business would be a costly endeavor. “The device business is too volatile,” one of the sources said.
RIM management, backed by the board, is fixed on a path to recovery that keeps its services business exclusive to BlackBerry, pinning its hopes on next-generation BlackBerry 10 phones it says will come later this year.
That’s an apparent turnaround from the policy put forward by former co-CEO Jim Balsillie, who sought to offer RIM’s secure data-crunching network to others for a fee.
Balsillie left the company earlier this year after his plan to radically shift RIM’s strategy was rejected, sources with knowledge of his plan told Reuters last month.
RIM’s security-focused network remains one of its biggest assets. It reaches behind corporate firewalls and taps into mobile networks globally to provide a framework that is unique among handset makers.
The Pentagon, for example, is RIM’s largest single customer, with an estimated quarter-million of its 78 million subscribers.
“There is in my view still time to restructure around the services business as a going concern or sale, but time is running out” said Mike Abramsky, a former RBC analyst who left the bank several months ago and urged a split last year.
Another option the bankers might consider would be for RIM to create a separate company to house its patents. RIM could then arrange a licensing deal with this new company before selling it. Canaccord Genuity analysts value RIM’s patent portfolio at $2.5 billion.
Licensing of its operating system is seen as unlikely, at least until BlackBerry 10 proves itself in the marketplace, and that is far from a given.
Initial previews of the software show a fluid, touch-based interface, and developers like how it easy it is to build applications for new devices with the HTML5 web coding language.
But the likely October launch of an initial device will pit new BlackBerrys head-to-head with a likely iPhone 5. RIM’s PlayBook tablet computer, the first device to use its new operating system, bombed with consumers.
Meanwhile RIM’s inventory, the components and finished devices it still holds, ballooned above $1 billion in mid-2011 and only dipped below that mark in December as RIM wrote down the value of the goods by almost $500 million.
Inventory bounced up again in the last quarter despite further write-offs, and RIM is widely expected to book more costs as it cuts prices on its older stock to get it out the door.
(Editing by Janet Guttsman)
(This story has been corrected to add missing word in paragraph 1)

Uncertainty will fade after the Greece elections, Spain’s has a confidence problem, there will be no fallout

By Michael Stott

MADRID | Wed May 30, 2012 4:37pm EDT

“Bankia’s problems came at the wrong timing that cause the markets to lose confidence in Spain, structurely there is no problem in Spain’s recovery, everything is a bit overboard, once the coast is clear after the Greece’s elections, everything will settle down, because there is no fallout from Greece, and Greece will not face bankruptcy, there is no need for me to say anything, until everything comes true later this month. – Contributed by Oogle.

(Reuters) – Crisis is the watchword in Madrid. Take your pick – liquidity crisis, debt crisis, banking crisis, economic crisis, confidence crisis, investor crisis, jobless crisis. Spain, the ailing euro zone’s latest problem child, has them all.
As the problems pile up, Prime Minister Mariano Rajoy’s five-month-old conservative administration feels like a government under siege. Nervy top officials are reluctant to speak on the record for fear of slipping up. Policymakers contradict one another. Plans keep changing. Financial markets reel amid the uncertainty. The gloom in ministry corridors is palpable.
The latest gaffe: after weeks insisting that one of the country’s biggest banks, Bankia, did not need fresh funds, ministers dropped the bombshell last Friday that there was a 23-billion-euro hole in the accounts. They have yet to explain clearly how they will find the money when they are already struggling to finance a spiraling national debt.
The effect of the Bankia news on fragile financial markets was devastating. Spanish shares dived to 9-year lows, the euro sank and investors fled Spanish government debt, pushing the yield towards the 7 per cent level at which fellow eurozone members Ireland and Portugal were forced to seek national bailouts from Brussels.
To hear the government tell it, outsiders have got it all wrong: Spain has lived beyond its means for too long and is now going through a painful but necessary period of adjustment to shrink its state sector, cut spending and boost competitiveness. All the right things are being done. Rajoy’s government is serious, committed and enjoys a comfortable parliamentary majority.
Officials say foreigners don’t understand that Spain has boosted its exports more than any other European country in the past three years, that it has reformed its labor markets, cut its costs of production and come clean about the problems in its banks, which lent too enthusiastically to finance a huge property bubble that has now burst.
Now, ministers say, Madrid just needs time and some help and support from its European partners to get through the most acute phase of the crisis and give the reforms time to work.
Unfortunately, time is running out.
Despite fresh proposals from Brussels on Wednesday that could go some way towards offering Rajoy what he wants – if they find their way through the Union’s tortuous decision-making process into law – Europe’s paymaster Germany has yet to fulfill Spain’s wish list.
Spanish depositors are jittery. Newspaper editors tell of calls from members of the public unsure what to do with their money, asking for advice. Anecdotes abound of the wealthy moving their money to the relative security of London, Germany or France. London property agents Savills and Knight Frank say the number of Spanish buyers grew 14-21 percent in April compared with the average of the preceding six months.
Official bank deposit figures are published with a big time lag: the latest numbers, for April, are due shortly.
Spanish bankers insist that there will be no bank runs. But ministers in private are clear about their wish to see European-wide bank deposit guarantee measures put in place quickly to avoid the risk of what could be a catastrophic event. There are signs the European Central Bank favors deposit guarantees.
Problems are mounting on other fronts. With the cost of borrowing heading rapidly towards 7 percent and most foreign investors already shunning Spanish debt, the government will find it increasingly difficult to refinance 98 billion euros of debt and find another 52 billion euros to fund its deficit this year.
Local banks are barely lending, or offering loans at prohibitively high rates, squeezing companies and increasing the risk of a chain of bankruptcies which could send the economy into a nosedive. The banking system’s total loans to the business sector were 44.6 billion euros at the end of March half of what they were at the end of the boom in 2007, and the contraction continues almost every month, according to Bank of Spain data.
Consumers are postponing big purchases and cutting back spending. Spain’s soaring borrowing costs have become a national obsession since the crisis. Taxi drivers opine knowledgeably about the “risk premium” Spain must pay to borrow and TV news bulletins open with the latest number for “la prima de riesgo”.
The government acknowledges that the situation is critical.
In private, officials say, Rajoy has been pressing Brussels and Berlin for the European Central Bank to guarantee all bank deposits in the eurozone to prevent bank runs, to buy Spanish sovereign debt to reduce yields and calm markets, for greater European fiscal integration and for allowing the European bailout fund to lend money directly to recapitalize Spain’s sickly banks. The ECB is resistant to bond purchases on a massive scale.
“Spain is going through a major crisis of confidence,” one diplomat said. “Markets are good at pricing risk but they hate uncertainty – and right now that uncertainty is killing Spain.”
Bankers and local media say Rajoy’s own stumbles are making matters worse at a critical time. The 56-year-old, like many of his ministers, hails from provincial Spain, has no international experience, lacks deep knowledge of finance and speaks only limited English.
A hastily scheduled press conference by the premier on Monday ended with markets taking fright at his lack of clarity about how to fund the Bankia bailout and his insistence that Spanish banks did not need a European bailout. Government sources expressed frustration that the media had failed to understand the prime minister’s “clear message”.
“I was expecting that this government would do things better,” one senior banker here said. “Instead they are shooting from the hip. You can’t say to the market that you are going to do one thing and then do something else.”
“Where are the technocrats ?” another banker asked. “What this government needs is a really good technocrat who has the experience and the knowledge to cope with a situation as tough as this one.”
Analysts and foreign bankers here say the Madrid government is making a big gamble by assuming that the European Union’s paymaster Germany, together with the European Central Bank, will in the end “do the right thing” and come to Spain’s rescue.
Germany has led opposition to increasing the size of the EU’s bailout fund, to guaranteeing all eurozone bank deposits, to allowing the use of common eurozone bonds to fund governments and to letting the ECB buy more government debt to push down yields.
Instead, Berlin preaches austerity, inviting the mainly southern European crisis countries to follow the same path it took last decade – structural reforms to improve economic competitiveness, tight discipline on spending and reductions in borrowing.
The resentment in Madrid is very apparent.
“Countries which are doing reforms need to find a way to be rewarded, rather than punished,” deputy Prime Minister Soraya Saenz said in a conversation with Reuters. “…it’s not possible to explain to citizens that what they save through austerity will then be spent on higher debt interest payments.”
Top officials mutter about how today’s European Union consists of a “German Union plus the rest” and local businessmen make unflattering comparisons with Berlin’s domination of Europe in World War Two.
A commonly heard view among top Spanish bankers, officials and diplomats is that Spain is “too big to fail”.
It is inconceivable, they say, to imagine the eurozone without its fourth biggest economy. Spain’s future is inextricably linked to Europe’s future. So Germany is bound to agree reluctantly to change course and allow the ECB and the bailout fund to support Spain.
“It may go down to the wire, it may get very bad,” one senior diplomat here said. “But Germany has to choose. With Greece it did not have to choose. It could allow Greece to fail. But if Spain fails, Europe fails. So in the end we have to believe that Merkel and the Taliban of the Bundesbank (German central bank) will change their minds and do what they need to do to save Europe.”
Deputy Prime Minister Saenz says it’s about nothing less than the future of Europe. “If the EU doesn’t reinforce the eurozone with some sort of mechanism, it’s not about who leaves, it’s about the EU itself. What is Europe without the euro?”
Whether that is true remains to be seen.
Reuters reported last November that France and Germany had secretly discussed plans for a smaller “core” eurozone consisting of strong nations intent on deeper economic integration.
“They think here that Spain is a very important country and a crucial part of Europe,” said one long-time Madrid bank adviser. “But they forget that for the Germans, Spain is a minor country next to Greece and Italy.”
(Additional reporting by Annika Breidthardt in Berlin and Fiona Ortiz in Madrid, editing by Janet McBride)