EU bail out - Could we cope?

baby_boomer

I agree. These guys were in the Casino gambling with our futures - and now they want us to pay for their bets.

It turns out that the European banks may be further in the mire than American banks. Bond yields are starting to rise, suggesting that the markets are starting to price in the risk of an EMU break-up.

Telegraph

"It took a weekend to shatter the complacency of German finance minister Peer Steinbrück. Last Thursday he told us that the financial crisis was an "American problem", the fruit of Anglo-Saxon greed and inept regulation.....

By Monday, Mr Steinbrück was having to orchestrate Germany's biggest bank bail-out, putting together a €35 billion loan package to save Hypo Real Estate. By then Europe was "staring into the abyss," he admitted. Belgium faced worse. It had to nationalise Fortis (with Dutch help), a 300-year-old bastion of Flemish finance, followed a day later by a bail-out for Dexia (with French help).

Within hours they were all trumped by Dublin. The Irish government issued a blanket guarantee of the deposits and debts of its six largest lenders in the most radical bank bail-out since the Scandinavian rescues in the early 1990s. Then France upped the ante with a €300 billion pan-European lifeboat for the banks. The drama has exposed Europe's dark secret for all to see. EU banks took on even more debt leverage than their US counterparts, despite the tirades against ''le capitalisme sauvage'' of the Anglo-Saxons...."

"...Will the Teutons bail out Club Med? If not, check those serial numbers on your euro notes for the country of issue. It may start to matter :eek: "

Telegraph

Eu President calls for a meeting of the Chairmen of all major EU banks.

baby_boomer

Generali wrote: »

I'm increasingly of the opinion that this whole bailout thing is a load of cr a p with us being the ones that are being told to pay for it.

Jeff Randall in the Telegraph agrees - He was against his editor, cheering on Congress to reject the plan

"....There is a conspiracy of bankers and politicians whose self-interest is masquerading as sophisticated policy. They want us to believe that they have the keys to salvation. I have not seen a scrap of evidence to confirm this..."

baby_boomer

EU co-ordinated plan left in tatters by Greece unilateral action

"Plans for a pan-European response to the global financial crisis lay in tatters last night as Greece followed Ireland in unilaterally guaranteeing all bank deposits. Amid reports that Greek depositors were rushing to withdraw their savings, Greece's Cabinet agreed to protect all deposits whatever their size. Previously the maximum guaranteed was €20,000 (£15,600).
A proposal by President Sarkozy of France to create a European €300 billion bailout fund also collapsed, leaving attempts on this side of the Atlantic to calm investor panic and lubricate the money markets in chaos...."