EU summit on debt crisis delayed

Graham_Devon

They need more time to talk about it :wall:

http://www.bbc.co.uk/news/business-15245611

Thrugelmir

Time is running out.

vivatifosi

There's nothing like leading from the front at a time of crisis.

And this is nothing like leading from the front at a time of crisis.

gagahouse

Thrugelmir wrote: »

Time is running out.

Hmmm, time was running fast out but I think for now the market, albeit on thin volume, is believing they have realised the extent and urgency of the problem finally and are putting together a bank recapitalization package and orderly Greek default. That they have delayed it may be seen as a sign that they are putting a serious credible package together and need more time to ensure it gets through and is robust enough to be effective.

Or they could let us all down again and disappoint greatly by the G20 deadline. Till then, I think they've bought themselves just a little bit more time.

Thrugelmir

With the July ECB stress testing of banks now discredited. Seems as matters are coming to a head.

Really2

Thrugelmir wrote: »

Time is running out.

True, but many won't except that what the BOE did last week helps our banks when time does finally run out.

gagahouse

Thrugelmir wrote: »

With the July ECB stress testing of banks now discredited. Seems as matters are coming to a head.

It may be one of the reasons for the apparent new found urgency lately, the EBA is looking mighty stupid after Erste, oh we did'nt notice 5bn of CDS they had because it wasn't in their 'trading' book. :rotfl:

Thrugelmir

Really2 wrote: »

True, but many won't except that what the BOE did last week helps our banks when time does finally run out.

I'm sure that last weeks move by the BOE was as much about giving UK banks liquidity. As inter bank lending in Europe drys up. Back to those dark days of 2008.

Graham_Devon

I wonder what they are conjuring up. Maybe something that will actually "fix" or halt the problems?

Or maybe a bail out, for the bail out of the bail out?

Or maybe they just haven't really got any idea what to do, so have gained more time to mull it over. Not that I am cynical or anything, but all this is suggesting to me, and likely others, there isn't a plan, and theres lots of problems with any plan they come up with, hence needing more time to fight it out.

The whole thing seems to be going on forever. Trouble is, every day of inaction and delaying makes the problem bigger.

Markets at the moment however seem to be on fire. Looks like they may just have broken the yo-yo effect.

gagahouse

Thrugelmir wrote: »

I'm sure that last weeks move by the BOE was as much about giving UK banks liquidity. As inter bank lending in Europe drys up. Back to those dark days of 2008.

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Agree, spread between overnight money and 3 month money has widened in sterling over last 6 months.

Rinoa

France and Germany may be the 'leaders' of the eurozone, but there are another 15 countries who are also members. They can't just come out and say 'this is what we're going to do'.

Other governments have to be consulted and all their parliaments have to agree. Hence the delay.

Greece will be let off, Euro banks will be bailed out and the bear junkies will have to look elsewhere for their next armageddon fix.