Keyword: euro

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  • Spain: Heading towards a general strike?

    02/20/2012 9:31:01 PM PST · by bruinbirdman · 4 replies · 1+ views
    Presseurop ^ | 2/20/2012
    "First massive protest against labour law reform," headlines Spanish daily La Vanguardia, following demonstrations on Sunday in 57 cities protesting against labour law reform introduced by the government of conservative Prime Minister Mariano Rajoy. Tens of thousands of people marched to the call of the major national trade unions, UGT and CCOO. It was the "first step towards an attack that could lead to a general strike," notes the Barcelona daily paper, for which this possibility would be "a serious mistake". The government cannot and must not back down on this issue because it would endanger its credibility towards the...
  • Throw the Greeks finally out of the euro! (English Translation of German)

    02/17/2012 10:14:00 AM PST · by C19fan · 14 replies
    Bild ^ | February 17, 2012 | Von Franz Solms-Laubach
    (It) is not much what exports the ailing Greek economy still abroad. But an export from Greece still exist: SPOTT, BESCHIMPFUNGEN, VERLETZENDE PÖBELEIEN! Germany has pledged over EUR 20 billion in aid the Greeks since 2010, about another 30 billion is to be decided on Monday.
  • Greece Is Burning and Nobody Cares (The market celebrates. Maybe endgame is finally coming)

    02/14/2012 5:56:22 AM PST · by SeekAndFind · 44 replies · 1+ views
    Motley Fool ^ | 02/14/2012 | Alex Planes
    Greece is burning. Not that this is a new phenomenon. But it sounds so sinister, so ominous.When you find out why it's burning, it becomes a tragicomedy. The Greek government -- led by unelected economist Lucas Papademos -- promises to slash the safety net of many Greek citizens for a big sack of bailout money. Ordinary Greeks, whose futures are being mortgaged, are very angry. Things burn. Then everyone goes home and waits for the money to arrive.The process repeats with such frequency that a lengthy Wikipedia page has sprung up to catalog each outburst, hence the tragicomedy. And why...
  • Europe: We've Done All We Can, Now It's America's Turn To Help

    02/13/2012 3:03:26 PM PST · by SeekAndFind · 33 replies
    Zero Hedge ^ | 02/13/2012 | Tyler Durden
    Cue the fireworks in 3...2...1... FRIEDEN EUROPEANS CAN'T DO MUCH FOR GREECE BEYOND AGREEMENT - BBGFRIEDEN: GREECE NEEDS STRUCTURAL REFORMS, SHORT-TERM FINANCING - BBGFRIEDEN: GREECE HAS HISTORY OF PROBLEMS IMPLEMENTING DECISIONS - BBG And... drumroll please: FRIEDEN SAYS HE WISHES U.S. MORE INVOLVED IN STRENGTHENING IMF - BBG Translation: Hey America, we've done all we can, now it's your turn to sustain the Ponzi. Because if we go, you go.The upside: think of just how much faster the latest and gratest $16.4 trillion debt target will be breached if America simply issues Greek bonds with a US guarantee. Like...
  • It’s All Over For Greece According to Bob Chapman

    02/09/2012 8:56:35 AM PST · by appeal2 · 16 replies
    www.KerryLutz.com ^ | 02/09/2012 | Kerry Lutz
    Bob Chapman, The International Forecaster, is back again discussing the imminent departure of Greece from the Euro. While it may seem extremely painful and destructive for now, in the long run it will be a plus. They won't be able to borrow money, which will force them to produce more at home and to build a sustainable economy. They will be on a COD basis with the rest of the world, but perhaps the Chinese and Russians will extend them some credit. And may be GE Capital will come to their rescue. Whenever there's a high profile bankruptcy stateside, GE...
  • Farewell to the Free Market? Western governments have compounded the economic crisis by...

    02/08/2012 6:01:09 PM PST · by neverdem · 6 replies
    City Journal ^ | Winter 2012 | Nicole Gelinas
    Western governments have compounded the economic crisis by rejecting the one force that can end it.In the years leading up to 2007, the rules necessary to govern a flourishing market economy broke down, producing a financial and economic crisis. Rather than responding to the crisis by fixing those rules, the West aggressively repudiated market economics, and the repudiation continues to this day. Through their actions, which have lately involved everything from European debt to the American financial system to house prices in Britain, government officials around the world have revealed a disturbing assumption: that they can decide how to allocate...
  • Economic Chaos Ahead

    02/08/2012 4:16:52 AM PST · by Kaslin · 49 replies
    Townhall.com ^ | February 8, 2012 | Walter E Williams
    Let's think about the kind of mess that we're in. Federal 2010 Medicare and Medicaid expenditures totaled $800 billion. The projected annual growth of both programs is about 7 percent. Social Security expenditures are more than $700 billion a year. According to the 2009 Social Security and Medicare trustees reports, by 2030, 49 percent of federal revenues will go for Social Security and Medicare payments. The unfunded liability of both programs is already $106 trillion.But not to worry. The Congressional Budget Office estimates that it's possible to sustain today's level of federal spending and even achieve a balanced budget. All...
  • Down, Not Out, in Paris as Crisis Whittles Away Welfare State

    02/08/2012 10:25:50 AM PST · by Cincinna · 8 replies
    SF Gate ^ | February 8, 2012 | Vidya Root   
    On a crisp, cold day last month, Inaya, an unemployed former Ikea manager, waited with about 100 people in a large, dingy hall at Credit Municipal de Paris to pawn a Gucci bag and some jewelry. Out of work for two years, Inaya, 35, sporting a tweed jacket and dark pants, was tapping the broker for cash for the first time as her unemployment benefits dwindled. "The structure of the French welfare state is such that you don't see acute poverty, but the model has reached its limit," said Philippe Chalmin, a professor at Universite Paris Dauphine. "It's clear France...
  • 'Merkozy' tells Greece to put earnings into special fund to make sure it pays off debt...

    02/06/2012 7:29:22 AM PST · by C19fan · 3 replies
    UK Daily Mail ^ | February 6, 2012 | Lee Moran
    France and Germany has controversially told Greece it should place state revenues into a separate fund so it can pay off its crushing debt - to avoid bankruptcy and prevent the crash of the single currency. French President Nicolas Sarkozy told a Paris news conference, with German Chancellor Angela Merkel, that Greece's new leaders must also 'take their responsibility'.
  • 20 Signs That Europe Is Plunging Into A Full-Blown Economic Depression

    01/29/2012 10:52:47 PM PST · by blam · 49 replies
    20 Signs That Europe Is Plunging Into A Full-Blown Economic DepressionJanuary 30, 2012 An economic nightmare is descending on Europe. With each passing month, the economic numbers across Europe get even worse. At this point it is becoming extremely difficult for anyone to deny that Europe is plunging into a full-blown economic depression. In fact, some parts of Europe are already there. In Spain the overall unemployment rate is over 22 percent, and in Greece one out of every five retail establishments has already been closed down. All over Europe, economic activity is rapidly slowing down, unemployment is skyrocketing and...
  • As French Vote Nears, Sarkozy Is Haunted by Grim Economy

    01/16/2012 6:15:36 PM PST · by Cincinna · 8 replies
    The New York Times ^ | January 15, 2012 | STEVEN ERLANGER
         As President Nicolas Sarkozy contemplates his race for re-election, with the first round of voting 100 days away, he is confronted with an economy reeling from the euro crisis and nearly zero growth. France has just lost its AAA credit rating and must cut government spending. The unemployment rate is 9.9 percent, a 12-year high, and rising. The loss of the treasured AAA rating, while expected, was a blow to France’s status in Europe, making it seem less like a power than a problem. The downgrade makes it harder for France to pretend to be Germany’s equal in leading...
  • EU commission: 'We know better than ratings agencies'

    01/16/2012 11:09:51 AM PST · by Olog-hai · 7 replies
    EU Observer ^ | 2012.01.16 @ 14:00 | Andrew Rettman
    The European Commission has claimed it has secret information about the positive state of EU countries' finances, following a shock downgrade of core member states. Commission spokesman Olivier Bailly made the statement at a regular press briefing in Brussels on Monday (16 January), two days after US-based agency Standard & Poor's (S&P) downgraded nine EU countries, including France. "We have more information than the ratings agencies and we think there are elements missing in their analysis ... We have monthly updates from member states. We share this information on a confidential basis. The ratings agencies do not have this information,"...
  • Just Say Nein - Bundesbank On European QE: "Abandon The Idea Once And For All"

    01/16/2012 1:55:44 PM PST · by King_Corey · 5 replies
    Zero Hedge ^ | 01/16/2012 | Tyler Durden
    While it will hardly come as a surprise to many that after making it abundantly clear that Germany is in total disagreement with ECB monetary policies, culminating in the departure of Jurgen Stark from the European central printing authority, Germany will not permit irresponsible, Bernanke-esque monetary policies, it probably should be noted that even following the most recent escalation of adverse developments in Europe, which are now on the verge of unwinding the entire Eurozone and with it the affiliated fake currency, that the German central bank just said that any European QE could only come over its dead body....
  • Ranting Andy Tells Kerry Lutz Europe is Toast

    01/16/2012 1:10:05 PM PST · by appeal2 · 4 replies
    www.KerryLutz.com ^ | 01/16/2012 | Kerry Lutz
    Miles Franklin’s reigning precious metals guru Ranting Andy Hoffman told us today that Europe’s economic system is toast. There’s no way for the weaker economies to make a comeback and pay down all the debt they’ve accumulated over the past several decades. More importantly to us New Yorkers, however, is that the NY Giants defied conventional wisdom and the prognostications of the clueless mainstream media and defeated the Green Bay Packers. While I know that this is a disappointment to many of my Wisconsin friends, family and fans, nonetheless it made it easier to wake up this morning and come...
  • As Reforms Flag in Greece, Europe Aims to Limit Damage ("I am Shocked" moment)

    01/16/2012 6:57:41 AM PST · by C19fan · 10 replies
    New York Times ^ | January 15, 2012 | Rachel Donadio and Niki Kitsantonis
    As Greece and its lenders prepare for another week of tense negotiations, European officials now say that the task is less to help the country through its troubles than to avoid the sort of uncontrolled default that many experts fear could threaten the global financial system. Officials from the so-called troika of foreign lenders to Greece — the European Central Bank, European Union and International Monetary Fund — have come to believe that the country has neither the ability nor the will to carry out the broad economic reforms it has promised in exchange for aid, people familiar with the...
  • IT'S OFFICIAL: S&P ANNOUNCES MASS DOWNGRADE OF EUROZONE COUNTRIES

    01/13/2012 2:25:57 PM PST · by SeekAndFind · 26 replies
    Business Insider ^ | 01/13/2012 | Eric Platt
    Standard & Poor's has officially cut the long-term credit rating of France and eight other Eurozone nations. Italy, Portugal, Cyprus, and Spain saw two notch downgrades, while Austria, France, Malta, Slovakia, and Slovenia were dropped one level. The ratings agency reiterated its ratings on Belgium, Estonia, Finland, Germany, Ireland, Luxembourg, and the Netherlands. Standard & Poor's has taken all 16 nations off of CreditWatch, which indicates a coming adjustment. However, the company has left 14 of the countries, including Italy and France, on negative outlook. Slovakia and Germany were the only two to move to stable outlooks. The move by...
  • German Debt Yields Turn Negative

    01/09/2012 9:06:47 AM PST · by buzzer · 4 replies
    wsj ^ | JANUARY 9, 2012, 8:14 A.M. ET | By EMESE BARTHA And NEELABH CHATURVEDI
    FRANKFURT—Germany paid a negative yield to investors at a debt auction for the first time in its history Monday, underscoring the haven appeal of German debt as the European debt crisis continues. In contrast, yields on French Treasury bills climbed from the previous sale, indicating that investors have more unease over French debt, with concerns rising that the euro zone's second-largest economy may soon lose its cherished triple-A rating. Germany joins Switzerland and the Netherlands in having negative yields at auctions. The pile of assets deemed to be safe is shrinking and investors are so nervous about the potential loss...
  • Italian Prime Minister Mario Monti: 'The euro is not in crisis'

    01/08/2012 7:40:34 PM PST · by bruinbirdman · 16 replies
    The Telegraph ^ | 1/9/2012
    Italian Prime Minister Mario Monti on Sunday rejected talk of a euro crisis and said Rome was open to the idea of a tax on financial transactions championed by France - but only if the measure was part of an EU-wide effort. "The euro is not in crisis, the currency has solidly maintained its exchange rate with the dollar," Monti said on RAI 3 public television, adding that Italy's "banking system is not under threat". "The problem we are facing is that some EU countries have a public debt crisis," he said. "Our crisis is a systemic crisis." Monti, a...
  • Will the euro crack in 2012?

    01/06/2012 11:38:40 AM PST · by bruinbirdman · 2 replies
    The Telegraph ^ | 1/6/2012 | Mats Persson
    The euro is in such a poor state that asking this question has become almost cliché. In truth, as the crisis is overwhelmingly about erratic domestic politics, it’s absolutely impossible to predict when the euro will bite the dust. What’s clear is that in the absence of some sort of fiscal union (likely to be collective borrowing amongst euro states in return for German-style budget rules), the single currency is doomed in the long-term. In the short term, however, there is still scope for plenty of muddling through – which is to say that there’s a strong chance that the...
  • Soros says EU break-up would be catastrophic: report

    01/06/2012 10:01:45 AM PST · by NormsRevenge · 10 replies · 1+ views
    Yahoo ^ | 1/6/12 | Sumeet Chatterjee - Reuters
    (Reuters) - A collapse of the euro and break-up of the European Union would have catastrophic consequences for the global financial system, billionaire investor George Soros was quoted as saying. "Today, the euro is potentially endangering the political cohesion of the European Union," .. "If the common currency were to break down, it will lead to the break up of the European Union itself. And this will be catastrophic not only for Europe but also for the global financial system." The euro zone crisis is "more serious and more threatening than the crash of 2008," the Economic Times reported, quoting...
  • UniCredit warns rights issue investors of euro break-up

    01/06/2012 12:56:04 AM PST · by bruinbirdman
    The Telegraph ^ | 1/6/2012 | Harry Wilson
    Struggling Italian lender UniCredit is warning investors in its €7.5bn (£6.2bn) rights issue to be ready for a break-up of the eurozone. In the prospectus for its cash call published today, UniCredit said the eurozone sovereign debt crisis could "worsen" and might lead to the reintroduction of national currencies in "one or more eurozone countries". "The departure or risk of departure from the euro by one or more eurozone countries and/or the abandonment of the euro as a currency could have major negative effects on both existing contractual relations and the fulfilment of obligations by the UniCredit Group," said the...
  • Look Out Below – The Nightmarish Decline Of The Euro Has Begun

    01/06/2012 4:30:20 AM PST · by blam · 18 replies
    TEC ^ | 1-6-2012
    Look Out Below – The Nightmarish Decline Of The Euro Has BegunJanuary 6, 2012 The euro is a dying currency. On Thursday, the EUR/USD fell below 1.28 for the first time since September 2010. In fact, as I write this the EUR/USD is sitting at 1.2791. Back in July, the EUR/USD was over 1.45. But this is just the beginning. The euro is going to go a lot lower. At this point, there are several major European nations that are on the verge of default, the European financial system is overflowing with debt and toxic assets, and most major European...
  • Italian PM Monti Mysteriously Jets Off To Brussels And The Euro Falls Below $1.28

    01/05/2012 8:15:23 AM PST · by dynachrome · 12 replies
    Business Insider ^ | 1-5-12 | Simone Foxman
    Reuters reports (via ForexLive) that Italian PM Mario Monti is flying to Brussels unexpectedly, and his office is giving no details about who he's going to meet or what he will while in the European capitol. News of his sudden trip coincided with a momentary drop in the value of the euro versus the dollar below $1.28, a value it hasn't hit since September 2010, according to CNBC. The euro has been falling steadily since Tuesday
  • EUROPE: This Is What Will Happen In 2012 (A compendium of research reports from Wall Street)

    01/03/2012 6:58:15 AM PST · by SeekAndFind · 6 replies
    Business Insider ^ | 01/03/2012 | Simone Foxman
    The last half of 2011 was dominated by ever more grim news from Europe. But will 2012 be the same? The eurozone sovereign debt crisis has escalated, but recent moves by the European Central Bank have calmed that angst for now. However, analysts have waxed skeptical that these measures will be enough to keep that optimism going for long, and are unconvinced that EU leaders' current plans for fiscal consolidation and a firewall against contagion go far enough towards addressing the crisis. We combed research reports from the street and put together a compendium of predictions from Wall Street's major...
  • Officially and unofficially, the euro reigns in the Balkans

    12/30/2011 8:57:35 PM PST · by Olog-hai · 2 replies
    EUBusiness.com ^ | 27 December 2011, 13:40 CET | (AFP)
    The eurozone crisis has not prompted panic in the Balkans even though the euro is the currency of reference here and Montenegro and Kosovo use it despite being a long way from membership. Throughout the region, loans are taken out and savings made in euros while salaries are determined based on the European single currency. "In the past, all of us in the Balkans were in love with the German mark. Since it disappeared, the euro rules," explained Zoran Jovanovic while sipping coffee at the popular Belgrade Biblioteka café. "It is the case in Belgrade, Zagreb, Podgorica, Skopje, Tirana, Sarajevo...
  • The Thinly-Veiled Fed Bailout Of Europe

    12/30/2011 4:14:43 AM PST · by blam · 12 replies
    TBI ^ | 12-30-2011 | Phil's Stock World
    The Thinly-Veiled Fed Bailout Of Europe Phil's Stock World Dec. 30, 2011, 5:45 AM The ECB is borrowing U.S. Dollars from the Fed to bailout European banks. And that is in addition to the Long Term Refinancing Operation (LTRO). However, the "borrowing" is not called "borrowing." It's called a "temporary U.S. dollar liquidity swap arrangement." Yet it is really borrowing because it's going massively in one direction for the purpose of giving the ECB Dollars to lend to European banks, so the ECB can avoid lending more Euros. The ECB doesn't want to tarnish its "inflation fighting" reputation and further...
  • Britain's Borders Close if Euro Goes (UK planning for collapse)

    12/28/2011 7:04:23 PM PST · by kristinn · 34 replies
    The Sun ^ | Thursday, December 29, 2011 | Tom Newton Dunn
    BRITAIN'S borders will be closed to continental Europeans if the euro collapses, it was revealed yesterday. The emergency measure would block hordes of French, German and Dutch nationals who would be desperate to withdraw cash here with credit cards if banks in their own countries dry up. It is feared a run on British banks could also result in them being unable to service UK businesses. Chancellor George Osborne has confirmed extensive contingency plans are being drawn up to safeguard Britain. The Treasury will not reveal specifics. But there will be limits on how much money can be deposited in...
  • Former Fed VP Accuses Bernanke Of Bailing Out Europe Via Currency Swaps

    12/28/2011 10:32:58 AM PST · by cowtowney · 9 replies
    Zerohedge ^ | 12/28/2012 | Tyler Durden
    First it was Zero Hedge. Then Ron Paul joined in. Now it is the turn of a former Dallas Fed Vice President, Gerald ODriscoll, to outright accuse the Fed of bailing out Europe courtesy of "incomprehensible" currency swaps, and implicitly accusing Bernanke of lying that he would not bail out Europe even as he has done precisely that. And not only that: by cutting the USD swap spread from OIS+100 to OIS+50, the Fed has made sure it gets paid less than ever for extended Europe the courtesy of bailing it out all over again. Incidentally, O'Driscoll says, "America's central...
  • A SWIFT Denial - How In Europe, Even Admission Of A "Plan B" Is Equivalent To Failure

    12/27/2011 10:41:47 AM PST · by Mariner · 15 replies
    Zerohedge ^ | 12/25/2011 | Tyler Durden
    While we have long known that the drachma, and recently the lira, have seen significant "when issued" interest by institutional clients desiring to hedge their currency collapse exposure, and thus early markets by various trading desks, little did we realize just how destabilizing this fact to the system would be, at least according to SWIFT. According to the WSJ, this organization, best known for making an abrupt appearance any time one wishes to do a wire transfer, then promptly disappearing until the next such instance, ended up promptly shutting down any Plan B optionality when "at least two global banks...
  • Greece in chaos

    12/27/2011 7:06:09 AM PST · by wgflyer · 41 replies
    Le Monde Diplomatique ^ | Noëlle Burgi
    Personally and collectively, the Greeks don’t understand and can’t cope with what’s happening now, let alone what will happen next. The welfare state is being swiftly and deliberately dismantled without any time to set up replacements..... ....Having seen off their worthless leaders, Greeks may not know who the enemy is any more.
  • Mario Draghi: more dangerous than Kim Jong-il

    12/23/2011 2:37:26 AM PST · by Olog-hai · 5 replies
    Daily Telegraph (UK) ^ | December 19th, 2011 | Daniel Knowles
    One unelected dictator may be dead, threatening us all with Armageddon, but another remains very much alive: this morning, the FT has an interview with Mario Draghi, the president of the European Central Bank. Draghi is accountable to essentially no one—but, like the late Kim Jong-il, he has an enormous amount of power to make our lives difficult. How? By refusing to do anything. Even as sovereign bond yields leap up further, the ECB president clings to the logic that the bank must protect its "credibility". … And here's what he says on the European Council treaty (FU, as Boris...
  • Evacuation plan for Brits in Spain amid warning euro collapse could leave them stranded

    12/20/2011 10:56:47 PM PST · by JohnKinAK · 3 replies
    Mirror ^ | 12/19/2011 | James Lyon
    EMERGENCY evacuation plans for Brits living in Spain and Portugal are being drawn up amid fears of the euro collapsing. The drastic proposals emerged as a former Security Minister warned expats could be left stranded and destitute by the break-up of the single currency. Brits who invested their savings in their adopted countries may not be able to withdraw cash and could even lose their homes if banks call in loans, worried ministers are warning. The Foreign Office is preparing to bring them back from Spain and Portugal if the two countries are forced out of the euro, triggering a...
  • Britain blames euro for triple-A warning

    12/21/2011 12:59:17 AM PST · by Olog-hai · 2 replies
    EU Observer ^ | 21.12.2011 @ 09:26 | Andrew Rettman
    The British government has blamed the euro for ratings agency worries on its triple-A status amid a widening political gap between Brussels and London. A UK treasury spokesman told newswires on Tuesday (20 December) that exposure to the eurozone is the main reason why Moody's earlier the same day warned that Britain's top-level grade faces "formidable and rising challenges." The spokesman said: "The UK is not immune to the problems facing our trading partners in the euro area; the crisis is having a chilling effect across Europe and it is important that the euro area continues to take decisive action...
  • A Financial Dunkirk: Britain Draws up Plans to Rescue Expats if Spain and Portugal...

    12/18/2011 6:21:15 PM PST · by kristinn · 42 replies
    UK Daily Mail ^ | Sunday, December 18, 2011 | Wil Longbottom
    ......are Hit by Financial Oblivion Evacuation plans for British expats stranded in Spain and Portugal if their banking systems collapse are being drawn up by the Foreign Office. The contingency plans are being put in place to help thousands of Britons if they were unable to get to their money in the event of a catastrophic banking collapse in two of the most vulnerable eurozone economies. Around one million British expats live in Spain, particularly around Marbella and Malaga, and some 50,000 in Portugal. The Foreign Office is concerned that those who have invested savings in their adopted countries would...
  • The Last Ponzi Game

    12/17/2011 12:49:59 PM PST · by Razzz42 · 5 replies
    The Wall Street Examiner ^ | December 16, 2011 | By Lee Adler
    A heavy Treasury auction schedule with a big settlement on Thursday was enough to contribute to keeping stock prices (SPX) in check this week, but not to knock down Treasuries. Demand for US Government paper is so great it simply engulfs even heavier than expected levels of new supply. The massive capital flight out of Europe is now confined to the only game in town, the US Treasury market, the last great Ponzi game still operating. This won’t end well, but it won’t end until it ends, and the technical signals suggest that it won’t happen in the short run....
  • Did The Fed Quietly Bail Out A (European) Bank On Tuesday?

    12/17/2011 11:30:09 AM PST · by Olog-hai · 3 replies
    Zero Hedge ^ | 12/17/2011 11:48 -0500 | Tyler Durden
    We know two things with certainty: In the week ended December 13 (14th excluded), one or more banks, most likely European, borrowed up to $2.5 billion from the Fed's Primary Credit Discount Window. And since US banks are drowning in dollar-based liquidity, any need to approach the Discount Window now, in the context of trillions of Excess Reserves, carries with its exponentially greater stigmata than it ever did during Lehman days. Also, in the week ended December 14, the Fed did a mid-month settlement of $31 billion in MBS purchases—a transaction which allowed a Primary Dealer to source critical liquidity,...
  • Debt crisis: Brussels accord on the verge of collapse

    12/16/2011 9:38:02 AM PST · by Qbert · 15 replies
    Telegraph UK ^ | 12/15/2011 | Louise Armitstead, Philip Aldrick & Ben Harrington
    Some of the world’s most powerful investment banks were downgraded by ratings agency Fitch as Germany’s cherished European fiscal compact appeared to be unravelling. [Snip] Credit ratings of the world’s biggest lenders have come under pressure as weak economic growth and concerns about whether European politicians have done enough to end the Eurozone debt crisis. [Snip] Meanwhile, Germany’s attempt to save the Eurozone was hanging in the balance as Hungary and the Czech Republic claimed it would be damaging and protesters in Warsaw demanded Poland stands firm against Angela Merkel. Amid fresh warnings that Europe is triggering a 1930s-style global...
  • French Central Bank Attacks British Economy As Eurozone Rescue Plan Starts To Disintegrate

    12/16/2011 4:43:34 AM PST · by blam · 3 replies
    TMO ^ | 12-16-2011 | Nadeem Walayat
    French Central Bank Attacks British Economy As Eurozone Rescue Plan Starts To Disintegrate Politics / Global Debt Crisis Dec 16, 2011 - 12:01 AM By: Nadeem Walayat French President Sarkozy let his attack dogs loose on Britain as illustrated by comments form the head of the French central bank, Christian Noyer attacking the British economy following threats of Standard & Poor's credit ratings agency downgrade of French Government debt as a consequence of the French banks exposure to bankrupting PIIGS debt. Christian Noyer stated "A downgrade doesn't strike me as justified based on economic fundamentals. Or if it is they...
  • Hannan: Eurocrats no longer disguise their loathing of Britain (Short Video, A Lesson for America)

    12/14/2011 11:10:39 AM PST · by Bokababe · 11 replies
    Youtube ^ | 12/14/11 | Daniel Hannan
    Daniel Hannan speaking in the debate on the conclusions of the European Council meeting (8-9 December). The debate took place during the European Parliament plenary session in Strasbourg this week.
  • KYLE BASS: Last Week's EU Summit Agreement Was A 'Doomsday Machine'

    12/14/2011 10:48:51 AM PST · by blam · 38 replies · 4+ views
    TBI ^ | 12-14-2011 | Mamta Badkar
    KYLE BASS: Last Week's EU Summit Agreement Was A 'Doomsday Machine' Mamta Badkar Dec. 14, 2011, 12:23 PM In a new interview with CNBC, Kyle Bass, managing partner at Hayman Capital Management, said that Europe is moving closer to restructuring as even "the citizens of those most troubled and profligate nations are losing confidence in the Euro dream". Comparing the European Monetary Union to his extended family, Bass said he was unlikely to sign a joint and several liability agreement with family members, and that was the problem in Europe. He said he expects the monetary bloc to break-up. In...
  • What if the euro collapses?

    12/13/2011 10:14:08 PM PST · by Arthurio · 34 replies
    -snip- A run on the banks by savers keen to put their money into a core euro country would bring down the banking system of the departing country overnight. Companies and private households would not have access to loans, nor would they be able access any more cash. The state, which in this situation should support the banks, would be bankrupt as well. Financial markets would deny it access to funding. The new currency, once it is introduced, would depreciate by between 30% and 50%, which would multiply the government’s debts. The depreciation would lead to imported inflation and trigger trade...
  • The European Union, and Euro-socialism in general, is a failed experiment

    12/12/2011 1:17:39 PM PST · by Qbert · 38 replies
    CNN (iReport) ^ | December 5, 2011 | Sahit Muja
    Time to let the whole thing slither down the sewer of history. First of all it is more and more clear that Europe should have let Greece default and instead of pumping bank money via Greece, they should simply have shored up those banks that would take losses. The banks would still take a haircut, but come out on the other side w/o Greece. Naturally this would remove Greece from the Eurozone and it would have to use the Euro or the US $ (without policy control over them) or renew its own currency. Secondly, setting up an emergency fund...
  • ‘Mother of all bank runs’ has already begun in eurozone

    12/12/2011 11:05:42 AM PST · by Texas Fossil · 40 replies
    First Post ^ | Dec 12, 2011 | Editor
    Uncertainty over the future of the eurozone runs high, despite last week’s high-on-hot-air agreement on moving towards greater fiscal union. And that uncertainty is driving European banks into a severe liquidity crunch that could cause the region’s entire banking system to collapse, analysts fear. The early warning signs of such a liquidity seizure are already showing up in the troubles that European banks face in raising short-term liquidity. French, Italian and Spanish banks have run out of collateral (typically US Treasures) that they put up to finance short-term loans, and have been forced to pledge their gold reserves in order...
  • Wall Street gives thumbs down to euro summit (Stocks drop sharply)

    12/12/2011 10:27:08 AM PST · by Qbert · 4 replies
    National Business Review ^ | December 13, 2011 | Nevil Gibson
    Stocks on Wall Street have dropped sharply as credit ratings firms gave the thumbs down to last week's European summit. A profit warning from Intel also weighed on blue chip stocks. It plunged 5.4% after warning that fourth-quarter revenue would fall about $US1 billion short of its previous guidance. Financial stocks were the weakest sector in the S&P 500 while Bank of America and JP Morgan Chase were two of the Dow's biggest decliners, shedding 5.1% and 4.1%, respectively. Fitch Ratings said the summit did “little to ease pressure" on the sovereign-debt crisis and that a comprehensive solution was “not...
  • Swiss, Germans Set To Unleash Capital Controls As European Companies Prepare For Euro End

    12/10/2011 9:18:17 PM PST · by PieterCasparzen · 12 replies · 7+ views
    ZeroHedge ^ | 12/10/2011 | Tyler Durden
    Even as Eurozone leaders attempted to instill some meager sense of accomplishment following the latest (but certainly not last) Euro summit culminating with yet another 7-page term sheet which achieved absolutely nothing, and in fact succeeded in alienating the UK even more, the real game continues behind the scenes. And it is a game which the euro looks set to lose. As Bloomberg reports, in the aftermath of the Telegraph's latest report confirming what has been said here all about the collateral crunch in Europe, Europe's CEO are now actively preparing for the worst case outcome: the end of the...
  • Euro crisis: Britain stands alone after PM David Cameron’s historic veto

    12/10/2011 4:45:11 AM PST · by iowamark · 16 replies
    The Sun, UK ^ | 10 Dec 2011 | GRAEME WILSON, Deputy Political Editor, in Brussels, and KEVIN SCHOFIELD
    DAVID Cameron has blasted the bully-boys of Europe with a sensational Winston Churchill-style "Up Yours". The PM vetoed a new treaty and kept Britain out of a dodgy deal to save the euro. But his bulldog spirit left the nation facing an unknown future and risking an EU backlash. The PM last night defended his historic veto of an EU deal intended to save the euro — despite infuriating pro-Europeans. Jubilant Tory MPs hailed his decision as a massive step towards Britain's EXIT from the European Union. His stand in Brussels was the first time a British Prime Minister has...
  • The Swiss Government Is Getting Ready For The Collapse Of The Euro

    12/09/2011 5:56:13 PM PST · by SeekAndFind · 15 replies
    Business Insider ^ | 12/09/2011 | Wolf Richter
    The Swiss government is preparing for a collapse of the euro, according to Swiss Finance Minister Eveline Widmer-Schlumpf. She told parliament that a work group was studying the imposition of capital controls and negative interest rates to protect Switzerland from the capital flight that a euro collapse would engender (Handelsblatt). A tidal wave of euros would drive up the Swiss franc, devastate Switzerland’s export economy, and devalue its vast wealth invested in other countries. Already in August, the Swiss National Bank instituted a currency peg and swore to defend it by acquiring “unlimited” amounts of euros, a risky strategy if...
  • Martin Armstrong Speaks About The Collapsing Euro and Monetary System and the Impact of MF Global

    12/09/2011 5:20:56 PM PST · by appeal2 · 1 replies
    www.KerryLutz.com ^ | 12/9/2011 | Kerry Lutz
    Martin Armstrong is back on the show to talk about what's really happening to the world financial markets. He explains how flimsy the entire Euro structure was from the get-go. He advised the leaders to unify Europe both monetarily and fiscally, but they rejected that advice, rightly believing that theexpanded European Union would never have been approved. His only surprise is that the entire structure held together as long as it has. He believes that Germany will be forced to inflate, because no one is willing to accept the consequences of massive deflation, complete with bank failures and widespread unemployment....
  • Art Cashin Explains Why Obama Is "Terrified" By A European Collapse

    12/09/2011 7:25:03 AM PST · by tcrlaf · 22 replies · 2+ views
    ZEROHEDGE ^ | 12-9-11 | Submitted by Tyler Durden on 12/09/2011
    Confused why Tim Geithner has seemingly booked a weekly round trip ticket to Brussels to give the Eurocrats their weekly pep talk (much to his endless humiliation as Europe Tells Geithner To Take His Advice And Shove It reminds us)? Art Cashin explains not only this, but why the biggest threat to Obama's reelection chances is not who the GOP candidate is in November, but what happens in the EURUSD as early as today. L astly, by implication, Cashin shoots down any hope that US decoupling from Europe is even remotely possible... something anyone who actually has seen a full...
  • Jim DeMint: How the U.S. Can Help Europe: Just Say No

    12/09/2011 6:57:22 AM PST · by SeekAndFind · 20 replies
    Wall Street Journal ^ | 12/09/2011 | Jim DeMint
    If the United States wants to help Europe find a way out of its current debt crisis, we must be a strong, world economic leader, not merely the lender of last resort. American taxpayers sent $40 billion to Greece last year, through the International Monetary Fund, to stave off an economic collapse. But the bailout did not prevent Greece's day of fiscal reckoning. It only delayed it. Austerity measures are still needed throughout Europe's socialized economy and the debt contagion has not been stopped. Financial chaos has spread from Greece to Ireland, Portugal, Italy and Spain, and it now threatens...