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  1. #1
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    Jul 2003
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    Kapiti in New Zealand
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    Default Economic meltdown, the € will end, Europe will disintegrate

    Free business resources - www.BusinessBlogsHub.com

  2. #2
    Join Date
    Sep 2007
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    Auckland
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    Default

    Marc, who is this guy and when was he speaking please?

  3. #3
    Join Date
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    Default

    Quote Originally Posted by Davo36 View Post
    Marc, who is this guy and when was he speaking please?
    The video was uploaded on February 25, 2009 by this guy: http://www.youtube.com/user/EconomyCrash

    Thats all I could see.

    Cheers

    Marc
    Free business resources - www.BusinessBlogsHub.com

  4. #4
    Join Date
    Sep 2008
    Posts
    7,658

    Default

    FIRST Greece; then Ireland and Portugal; then Italy and Spain. Month by month, the crisis in the euro area has crept from the vulnerable periphery of the currency zone towards its core, helped by denial, misdiagnosis and procrastination by the euro-zone’s policymakers.

    Recently Belgian and French government bonds have been in the financial markets’ bad books. Investors are even sniffy about German bonds:...........
    Worse, there are signs that the euro zone’s economy is heading for recession, if it is not there already. Industrial orders in the euro zone fell by 6.4% in September, the steepest decline since the dark days of December 2008.

    ...............

    The European Commission’s index of consumer confidence fell in November for the fifth month in a row.

    Now an even bigger calamity is looking likelier. The intensifying financial pressure raises the chances of a disorderly default by a government, a run of retail deposits on banks short of cash, or a revolt against austerity that would mark the start of the break-up of the euro zone.

    European banks are dumping the bonds of the least creditworthy, and other assets, in an attempt to conserve capital and improve cashflow as a full-blown funding crisis looms. Governments are promising ever more severe budget cuts in the hope of pacifying bond markets.

    Consider the three ingredients for recession: a credit crunch, tighter fiscal policy and a dearth of confidence. In aggregate, European banks’ loans exceed their deposits, so they rely on wholesale funds—short-term bills, longer-term bonds or loans from other banks—to bridge the gap. But investors are becoming warier of lending to banks that have euro-zone bonds on their books and that can no longer rely on the backing of governments with borrowing troubles of their own. Long-term bond issues have become scarce and American money-market funds, hitherto buyers of short-term bank bills, are running scared.

    yada yada yada

    During the credit boom, cheap capital flowed into Greece, Ireland, Portugal and Spain to finance trade deficits and housing booms. As a result, the net foreign liabilities—what businesses, householders and government owe to foreigners, less the foreign assets they own—of all four are close to 100% of GDP.

    Market gurus and other students of misaligned stock, bond or home prices often say that although it is easy to spot an asset-price bubble, it is impossible to know the event that finally pricks it.

    http://www.economist.com/node/21540259
    Last edited by eri; 29-11-2011 at 01:12 PM.
    have you defeated them?
    your demons

  5. #5
    Join Date
    Sep 2008
    Posts
    7,658

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    WE JOURNALISTS are probably too bleary-eyed after a sleepless night to understand the full significance of what has just happened in Brussels. What is clear is that after a long, hard and rancorous negotiation, at about 5am this morning the European Union split in a fundamental way.
    In an effort to stabilise the euro zone, France, Germany and 21 other countries have decided to draft their own treaty to impose more central control over national budgets. Britain and three others have decided to stay out.
    ...........................
    Confronted by the financial crisis, the euro zone is having to integrate more deeply, with a consequent loss of national sovereignty to the EU (or some other central co-ordinating body); Britain, which had secured a formal opt-out from the euro, has decided to let them go their way.
    Whether the agreement does anything to stabilise the euro is moot. The agreement is heavily tilted towards budget discipline and austerity. It does little to generate money in the short term to arrest the run on sovereigns, nor does it provide a longer-term perspective of jointly-issued bonds. Much will depend on how the European Central Bank responds in the coming days and weeks.

    http://www.economist.com/blogs/charl...-and-eu-summit

    wonder if in the future they come back begging to the colonies, they so badly treated in when they joined the union....

    not looking like it at the moment with their new tax on long distance airfares
    Last edited by eri; 09-12-2011 at 10:27 PM.
    have you defeated them?
    your demons


 

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