Is The Contagion Officially Spreading? Merkel Calls For "Orderly Insolvencies"

The Business Insider ^ | 5-4-2010 | The Pragmatic Capitalist

[blam]

Is The Contagion Officially Spreading? Merkel Calls For "Orderly Insolvencies"

The Pragmatic Capitalist
May. 4, 2010, 8:59 AM

Angela Merkel is apparently stepping up measures to prepare for “orderly insolvencies” so as to avoid a repeat of the situation in Greece. I.e., there are no more bailouts. The Euro currency continues to crash and burn overnight and the CDS in all the remaining PIIGS are blowing out. The situation is beginning to take a turn for the worse again. Is the Euro slowly unraveling?

The market has tested the resolve of the EMU and discovered that they were forced to use all their bullets on likes of Greece. The move towards Spain can now begin in earnest as the sharks begin to circle the other weakened countries in Europe. CDS in all the remaining countries are blowing out with Spain exploding 29 bps. The Germans now have a real problem on their hands. Do they give the Greeks their massive bailout when they can plainly see that the risk of contagion has not only NOT been contained, but has perhaps worsened?

[snip]

[blam]

CDS Storm In Europe Spreading To UK, Italy, And Spain

[Marty62]

Get in line. (Orderly insolvencies)

[ridesthemiles]

Another failed academic idea. Each country should have stayed on their own currency.

Countries who refuse to behave like adults are enabled in their bahavior by the ones who do run a country as tho it is a business,

[ridesthemiles]

Another failed academic idea. Each country should have stayed on their own currency.

Countries who refuse to behave like adults are enabled in their bahavior by the ones who do run a country as tho it is a business,

[AAABEST]

The Euro currency continues to crash and burn overnight and the CDS in all the remaining PIIGS are blowing out. The situation is beginning to take a turn for the worse again. Is the Euro slowly unraveling?

In the past, when the Euro went down gold usually went down with it - partly because investors ran into the dollar. Lately however I've noticed that as the Euro dives gold is shooting up.

Lately currency investing has been somewhat like gambling, high volitility with nothing being stable. One month the Euro is way up on the dollar, the next visa versa.

Perhaps investors are beginning to realize that no fiat currencies are "safe."

[GeronL]

Don’t worry one of those dominoes getting ready to fall is the US

[GeronL]

The dollar is no longer a safe haven

[ClearCase_guy]

With any luck, people will return to that bit of wisdom. Just as with our own union of the several states, the expectation was that MA would pass certain laws and KS would pass other laws, and people could see which laws were "better". Maybe people would move to one state or the other, or maybe one state would change its mind and emulate the other state. In any case, over time, people see what works and what doesn't work. Europe ought to be the same way.

Enforced unions where everything is standardized and homogenized can go really, really wrong.

[Paine in the Neck]

Countries who refuse to behave like adults are enabled in their bahavior by the ones who do run a country as tho it is a business,

That's the whole idea of socialism, isn't it? The enabling bit, that is. Works the same for supernational organizations as for communities and individuals. By subsidizing the worst impulses of the most venal members it enslaves the upright and responsible.

[silverleaf]

“orderly insolvencies”

is that like, kindly get line for the lifeboats, which will be put into service if and when available

[silverleaf]

so what is? China is looking shaky too

[TigerLikesRooster]

Frau Merkel swinging her ax, cutting zombies loose.

[broken_arrow1]

Uh Oh...