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The Euro crisis

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Comments

  • de1amo
    de1amo Posts: 3,401 Forumite
    1,000 Posts Combo Breaker
    looks like this paves the way for european fiscal union with the germans ruling the roost--well they had to get something for their marks!
    mfw'11 No68- 55k mortgage İO--little to nothing saved! i must do better.
  • vivatifosi
    vivatifosi Posts: 18,746 Forumite
    Part of the Furniture 10,000 Posts Mortgage-free Glee! PPI Party Pooper
    The commentators I've seen this morning say that it's more can kicking (albeit a bigger can) and that more money will eventually be needed. They did however also say that this gives more time for the governments in question to get their houses in order.

    What I really want to know is how this story is being covered in the other 8 non-Eurozone member countries. Is it as big a deal as here, bigger, or is our membership of the IMF and likely pick up of debt what is triggering interest here?
    Please stay safe in the sun and learn the A-E of melanoma: A = asymmetry, B = irregular borders, C= different colours, D= diameter, larger than 6mm, E = evolving, is your mole changing? Most moles are not cancerous, any doubts, please check next time you visit your GP.
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    vivatifosi wrote: »
    The commentators I've seen this morning say that it's more can kicking (albeit a bigger can) and that more money will eventually be needed. They did however also say that this gives more time for the governments in question to get their houses in order.

    What I really want to know is how this story is being covered in the other 8 non-Eurozone member countries. Is it as big a deal as here, bigger, or is our membership of the IMF and likely pick up of debt what is triggering interest here?

    It's a big deal in Aus. Here it's being presented as being important as China is a big customer of ours and the Eurozone is a big customer of China. Also there are loads of people here with Greek, German and Italian heritage.

    The Aussies are mostly looking on with quiet bemusement. I don't think they really know what to make of it apart from the large majority in favour of a Government surplus probably got bigger.
  • Degenerate
    Degenerate Posts: 2,166 Forumite
    Generali wrote: »
    It's ok now. Everything's sorted. Merkozy and Squirtle have fixed everything.

    Speaking after EU leaders agreed a deal to tackle the situation, Mr Barroso said the "work needed to finalise certain aspects of this package" would happen in the next few weeks.


    I'm sure it's a mere formality...

    And it's not big enough anyway.
  • pqrdef
    pqrdef Posts: 4,552 Forumite
    Markets up. On the usual form they'll be down later. Just a question of whether disillusion sets in this afternoon or tomorrow or Monday. (I feel a short coming on)
    "It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    edited 27 October 2011 at 9:01AM
    so in summary

    a. they are asking the creditors voluntarily to accept a F&F of 50% : they haven't agreed yet

    b. they will recapitalise the banks
    i.e.
    the bank will ask investors to give them money (well doesn't seem very likely but we will see)
    and/or they will stop lending
    and/or the governments (well Germany as other governments have no money) will give them more money
    and/or the central bank will give them more money

    c. the trillion fund will invite people to contribute i.e. China and ????????????


    and of course Greece and Italy continue to spend far more that their income



    now I'm not saying that I don't think this is a solution but......
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Seems like they may have finally got somewhere and bought an extended period of time, enough time to actually sort out the real problem (if that's possible).

    However, the business editor late last night on the news said if they get this through (wasn't a done deal at the time) the banks may not take too kindly and may cause a default. They haven't, afterall agreed to this 50% haircut. Think they would be silly not to though.
  • drc
    drc Posts: 2,057 Forumite
    How many of the banks that will have to take a 50% haircut are likely to go bankrupt if they do so? Are the banks really likely to accept this of their own volition?
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    drc wrote: »
    How many of the banks that will have to take a 50% haircut are likely to go bankrupt if they do so? Are the banks really likely to accept this of their own volition?


    that's why they need to recapitalise the bank and that goodness for that trillion euro rescue fund

    clearly the simple way was simply to give Greece the money but politically that's not acceptable in Germany but it would seem that when all netted out it comes close to that (if it actually happens of course)
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    drc wrote: »
    How many of the banks that will have to take a 50% haircut are likely to go bankrupt if they do so? Are the banks really likely to accept this of their own volition?

    The banks will get another bail out and so the insolvency will reach wider once again.
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