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Europe mistakes market lull for vote of confidence
The Telegraph ^ | 10/19/2012 | Ambrose Evans-Pritchard

Posted on 10/19/2012 11:26:39 PM PDT by bruinbirdman

Sorry to quibble, but there was no EU banking union deal last night. It was a step backwards from agreements already made in June.

Germany has succeeded in kicking the issue into touch until after the Bundestag elections late next year. There will be no decision until deep into 2013 on whether to recapitalise the banks (ie crippled Spanish banks) directly through the European Stability Mechanism.

The crucial issue of whether this can be applied "retroactively" to legacy assets remaining from the Spanish burbuja will be discussed later by finance ministers. ie, by the same AAA bloc that has already said it won't underwrite this mess.

The final text repeats verbatim the loose commitment from the June summit to break the vicious circle between banks and sovereign states, but Europe is not in fact any closer to doing so. The timetable has slipped further.

As our Brussels correspondent Bruno Waterfield reports, the EU has wasted the window of opportunity offered by the ECB's Draghi Plan to restore market trust.

Sovereign debt strategist Nicholas Spiro says Europe's leaders have mistaken the bond calm of recent weeks for a vote of confidence in their crisis strategy. Woe betide Spain.

The country is left dangling in the wind. It has to be assumed that the costs of the Spanish bank bail-out – €60bn package from the ESM – will fall on the shoulders of the state. The sum could ultimately be nearer €100bn if the bears are right about the true condition of the Spanish banking system and housing market (which has been prevented from clearing so far).

As the headline in El Pais reads this morning "Germany prevails, Spain loses banking union battle."

The failure to clear up this point is certain to cause further bitterness in Madrid. It

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TOPICS: Business/Economy; Crime/Corruption; Foreign Affairs; News/Current Events

1 posted on 10/19/2012 11:26:45 PM PDT by bruinbirdman
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To: bruinbirdman

The liberal-fascist-socialist E.U. must die !

Good if they don’t find a deal .
The croocks like Hollande( the shamefull french president) or Sarkozy are trying to build behind our backs a big federal state when european people repeatedly said and voted NO for that .
The croocks didn’t receive any mandate for that.... And Obama , the liberal-fascist in chief , is backing that E.U. with its endless debdt and no more freedom, and controled(owned) medias.

So get rid of ObamaSS and the world will begin to be better and it will help us ! Thanks

2 posted on 10/19/2012 11:38:23 PM PDT by Ulysse (l)
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To: bruinbirdman

Here’s a bit of bizarre for you, speaking of Europe:

From what I can see, ice cube makers are banned in Norway, because they’re bad for the environment.

The whole region needs to burn to the ground.

3 posted on 10/19/2012 11:46:13 PM PDT by Hardraade ( (I will fear no muslim))
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To: Hardraade

pass the popcorn they are all going down
france just elected someone who makes b.o. look like ronald reagan
germans give more money to more dead beats than even the libtards can count
oh and those banks??
well everyone in spain has figured this out
so the next couple of years is going to be a blast
(literally, not figuratively)

4 posted on 10/20/2012 12:21:08 AM PDT by genghis
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To: bruinbirdman

They have an agreement not to let TSHTF before the US election.

after that - watch out.

5 posted on 10/20/2012 12:27:13 AM PDT by PGR88
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To: bruinbirdman

If Merkel continues to throw German money into the fire, her party will be lucky to beat NPD in the next election.

Country most likely to become a police state within 10 years - Greece

Country that is already a police state - Sweden

This continent is a disaster everywhere outside of Switzerland.

6 posted on 10/20/2012 12:54:54 AM PDT by Viennacon
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