Relief | 79 comments (79 topical, 0 editorial, 0 hidden)

Geeee.... austerity has two euro countries KO and a lot of banks waiting for the domino effect...

Meanwhile German has not feel yet the feedback of a hard monetary policy via debt deflation and insolvency in the peripheries creeping into German banks. That's why there are bank bail outs.
If german is smart it will keep bailing out other banks to bail himself out...with the destruction of the safety net in one country after the other. Portugal is the next one.. and it will be easy to bail again without problems.

The big ifs are Italy and Spain. Can they destroy Italy and Spain , their safety net and not be affected? Is Spain too big to fail or not? can the german monetary policy destroy Spain via a "crazy market moment"? I always thought Spain was too big to fail, so no further GDP destruction was accpeted and sapnish debt will be monetized.. now I am not sure what the crazy Merkel austeristas group thinks.

A pleasure

I therefore claim to show, not how men think in myths, but how myths operate in men's minds without their being aware of the fact. Levi-Strauss, Claude

by kcurie on Mon Nov 22nd, 2010 at 10:15:33 AM EST

Re: Relief (4.00 / 2)

Who will be the Lehman Brothers of this crisis?

I suspect, given the amount of debt Italy owes France (per the notorious "web of debt" chart elsewhere in this thread), Italy might be Bear Stearns to France's JP Morgan. The ECB and Germany will underwrite France's takeover of Italy for less than the value of Italy's Palazzo Chigi. That leaves Spain as Lehman Brothers and Germany as Citi (which remarkably, avoided a bailout even though its share lost 99% of its value at one point).

Of all the ways of organizing banking, the worst is the one we have today — Mervyn King, 25 October 2010

by Carrie (migeru at eurotrib dot com) on Mon Nov 22nd, 2010 at 10:24:25 AM EST
[ Parent ]

Re: Relief (none / 0)

There are mutterings from the IMF that destroying the welfare system of countries probably isn't a good plan.

by Colman (colman at eurotrib.com) on Mon Nov 22nd, 2010 at 10:27:00 AM EST
[ Parent ]

Re: Relief (none / 0)

Brussels knows better.

Of all the ways of organizing banking, the worst is the one we have today — Mervyn King, 25 October 2010

by Carrie (migeru at eurotrib dot com) on Mon Nov 22nd, 2010 at 10:44:01 AM EST
[ Parent ]

Re: Relief (4.00 / 4)

It says something when the IMF is the sane one.

Be nice to America. Or we'll bring democracy to your country.

by Drew J Jones (pedobear@pennstatefootball.com) on Mon Nov 22nd, 2010 at 10:45:32 AM EST
[ Parent ]

Re: Relief (none / 0)

European Tribune - Relief

Ireland's impending rescue by the seriously suited legions of the ~~Washington/~~Brussels consensus

I corrected your unfair jab at the Anglo-Saxon Economic Elite.

Of all the ways of organizing banking, the worst is the one we have today — Mervyn King, 25 October 2010

by Carrie (migeru at eurotrib dot com) on Mon Nov 22nd, 2010 at 10:50:53 AM EST
[ Parent ]

Re: Relief (none / 1)

Well - they should know.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Mon Nov 22nd, 2010 at 11:25:18 AM EST
[ Parent ]

Re: Relief (none / 1)

Sometimes it does not feel like a plan... it feels like.. I do not know what it feels like.

Europe and the USA self-destructing for the sake of.. what? a short delay of the destruction of the white-western elite?

A pleasure

I therefore claim to show, not how men think in myths, but how myths operate in men's minds without their being aware of the fact. Levi-Strauss, Claude

by kcurie on Mon Nov 22nd, 2010 at 05:09:05 PM EST
[ Parent ]

Relief | 79 comments (79 topical, 0 editorial, 0 hidden)

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