Europe's grand plan risks slow death by a thousand cuts

The Telegraph ^ | 10/13/2011 | Jeremy Warner

[bruinbirdman]

Is Europe's planned programme of banking recapitalisations going to work?

It depends how it is done, but the omens aren't good. The message from bankers at the Association for Financial Markets in Europe (AFME) annual dinner in London this week was a concerning one.

[hinckley buzzard]

The relentless downgrading, step by step, country by country, by S&P, reveals the overall strategy-- which is an attempt to engineer a "soft landing" for the euro community.

It won't work. The Euro-world is toast.

[Vince Ferrer]

European leaders, especially Sarsky and Merkel, are desperately trying to hold up markets while they come up with a plan to deal with Greece. They announced recently that they will announce a plan at around the first week of November, which will comprehensively deal with Greece. They did this to try to restore calm amd order and the appear ance of being in control.

However, one Belgian bank has already failed since that annoucement, other banks are getting closer, and they are unable to wait weeks for a plan. By the time the "plan" arrives, it may already be irrelevant, swept up by events.

Here is a true black swan event that will outdo even Greece, and can become the final straw for Europe, Iceland's Katla volcano is getting restless