Posted on 06/02/2012 10:50:53 AM PDT by Olog-hai
The US has joined ranks with EU officials exploring ways to pump eurozone money directly into Spain's troubled banks instead of having to further burden the state budget.
"We were talking about the possibility that the banks, not only Spain's but also in other countries who need it, could access funds directly without intervention from the governments and without conditions," said Spanish deputy PM Soraya Saenz de Santamaria after meeting US finance minister Timothy Geithner in Washington on Thursday (31 May).
"The treasury secretary indicated that we are working in the same direction and that we must find a solution for the banks," she added.
Meanwhile, an International Monetary Fund official at a conference in Brussels on Thursday also pressed for "decisive steps" in what is now generically being called a "banking union."
"Such steps would involve providing banking support from a common resource pool independent from national sources, sooner rather than later," IMF deputy chief Nemat Shafik said, a month before an EU summit where leaders are set to discuss the way forward for the eurozone, including the possibility of a banking union.
European Central Bank (ECB) chief Mario Draghi, one of the architects of the eurozone plan, on Thursday told EU parliamentarians in Brussels that the euro setup in its current form was "unsustainable."
"The next step ... is to clarify what is the vision a certain number of years from now. The sooner this is specified, the better it is."
In Draghi's view, a banking union would need to be supervised centrally, guarantee deposits for the banks' customers and set up a joint bailout fund banks would contribute to. …
(Excerpt) Read more at euobserver.com ...
"Intelligent people know that when you're in a hole, you stop digging! Europe is in a hole. Austerity isn't working. Austerity is a hole. Europe needs to stop digging the hole of austerity, and they need to go back to what works! They need to throw billions of euros at the debt -- that's the only thing that will revive their economies."
The stupid. It hurts.
In the same vein:
Never changing your oil may enhance your Car’s resale value.
Einstein....Insanity is doing the same thing over and expecting a different result.
Just wonder how much the American taxpayer must pay to fund Obama and Geithner’s “generosity”. Why bother to have a Congress?
We shouldn’t have a leftist Congress. Bunch of oathbreakers all, and the people do have the authority to deal with that.
The article gives little attention to:
(a) Germany would have to agree to “pay for” a Eurobond, the proceeds of which would then fund the Bankia bailout;
(b) Merkel does not want to do this, and her populace is behind her;
(c) without control over the budgets (expenditures) of another country, why should German taxpayers fund the Eurobonds?
(d) Greece, Italy, Ireland, Spain and Portugal have not put their houses in order, and are unlikely to do so when more funds come, relieving the pressure to “order their house”;
and
(e) the amount needed in Eurobonds for Spanish banks alone (not only Bankia) would be too much for Germany and other creditor Eurozone countries to handle (as then up comes Italy).
They either need a complete economic and political union or they need to dissolve the euro.
The rest is fantasy with the magnitude of the numbers proving that it is a fantasy — something lost of the reporter who wrote this article.
Okay, we’re heading for that brick wall, we’ve already floored the gas - HIT THE NIRTO!
Sure wouldn't want to be putting conditions on the banks we bail out, would we, Timmy?
What Europe should do is exactly what the US should have done—and didn’t: let any banks that need to fail, fail, but have their assets be taken over, broken up, and sold off in an orderly way. That’s how we handled the S&L crisis back in the day and that’s what we should have done instead of the auto bailouts.
It’s exactly what Europe should do. Let the bank assets be bought up for what they’re worth, and let the new bank owners handle any writing down of assets or reworking of loans that best suits their needs.
Won’t possibly be done—but it should be.
They aren’t worried about bringing things back to normal; that’s why they’re prolonging the crisis, so that the member states will be blackmailed into more centralization.
You’re right.
German workers now retire at 67, or so I am told, and Greek workers 17 years earlier. Even with the German elite holding out for their desired terms, I (were I among the greater “non-elite” German workers) would not put up with that deal.
The “elite” can control things — to a point and during stability. Beyond that point? Greece is about there already.
I don’t have all the answers, but then neither does the European Council nor Frau Merkel. She had trouble finding Berlin on a map of Europe during a recent event. I live in Texas and have no problem doing so. I doubt Hollande could find much either.
The euro-elite aren’t worried about having the actual right answers. They’re quite fanatical.
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