Posted on 06/16/2012 1:34:57 PM PDT by Kartographer
Yes, it is "unfortunate" that Spain's bailout plan was poorly planned, organized and executed. It is not unfortunate that some are still left who can do simple math and call out Europe's failed plans. Which brings us to the present, where we find that even Deutsche Bank has given up hope for interim solutions, having realized that the market will no longer accept transitory, feeble arrangements. Instead DB is now formally calling for a big bang resolution, one coming from the ECB. Here is the punchline: "ECB has room for manoeuvre, but needs political cover for a ‘big’ policy" or said otherwise, "A shock is required to get a liquidity response." In other words: Europe's only real hope for even a stop gap solution... is a wholesale market crash, not surprisingly the very same conclusion that Citi reached on May 19 when they warned that only Crossover (XO) at 1000 bps or wider could push Europe into acting...
(Excerpt) Read more at zerohedge.com ...
Maybe they should kick every single country out of the union, let them fail, and preserve the integrity of the system by having it apply to nothing.
“So the solution of getting the ‘train’ back to running as it should is to CRASH IT!”
Actually, yes. All that suffers is the metaphor, not logic. Economies are unlike trains in that they can benefit from crashes. It’s like how when a business goes bankrupt you stop wasting money on investing in it.
As one pundit on Fox Business said Spain is bragging about a Bank rescue while they should be embarrassed.
Sounds like this guy is suggesting print-more-Euros as the solution. Stupid. The banks have to fail.
“No One Expected the Spanish Recapitalization (to work)”
Thanks for posting. Interesting comments here...any many more at ZH. BTTT!
BE PREPARED!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.