The Air Has Been Let Out Of The Balloon
source: http://theeconomiccollapseblog.com/archives/the-air-has-been-let-out-of-the-balloon
-
-
- Revelation1217
- added this
Do you hear that sound? It is the sound of Europe being hit with a cold dose of financial reality. The air has been let out of the balloon, and investors all over the world are realizing that absolutely nothing has been solved in Europe. The solutions being proposed by the politicians in Europe are just going to make things worse. You don't solve a sovereign debt crisis by shredding confidence in sovereign debt. But that is exactly what the "voluntary 50% haircut" has done. You don't solve a sovereign debt crisis by pumping up your "bailout fund" with borrowed money from China, Russia and Brazil. More debt is just going to make things even worse down the road. You don't solve a sovereign debt crisis by causing a massive credit crunch. By giving European banks only until June 2012 to dramatically improve their credit ratios, it is going to force many of them to seriously cut back on lending. A massive credit crunch would significantly slow down economic activity in Europe and that is about the last thing that the Europeans need right now. If the deal that was reached last week was the "best shot" that Europe has got, then we are all in for a world of hurt.
-
-
DanCastro
-
So, first you steal most of the money and then you demand the others make up the diff or you will withdraw financial services? I say we start a people's bank and give the current banks all the bad debt to write off so we can start fresh instead of living for years under austerity programs which only serve to protect the rich!
- 7 months ago
-
DanCastro
-
-
Kelly_Balthrop
-
Dead on Revelation1217. All the relief did is put more stress on the other European banks. And to top it off, now the whole deal is going to the Greek voters for referendum. It may not even happen.
- 7 months ago
-
Kelly_Balthrop
