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View Diary: Is Rome Burning? (16 comments)

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  •  There was an interesting article in today's NYT. (1+ / 0-)
    Recommended by:
    Keith930

    In Debt Crisis, a Silver Lining for Germany

    It makes a point of a very interesting disparity. The worse the debt ratings of the countries in the periphery become the higher their borrowing cost rise. This has had the ironic effect in bringing down the borrowing costs of Germany and The Netherlands since investors have fled the PIIGS and moved to the few places in Europe that looked like a safe haven. This goes a long way to explaining why Germany has no interest in Eurobonds and wants the ECB to remain its captive.

    The euro zone is doomed. If its dissolution is chaotic it seems impossible that it would not trigger a serious global financial crisis.

       

    •  From Barclays today (1+ / 0-)
      Recommended by:
      Richard Lyon
      Barclays economists believe Italy and Spain are likely to need an external financial ‘shield’ of 500-800 billion euros to protect themselves from destabilizing market dynamics.  That’s bigger than the U.S.’s Troubled Asset Relief Program launched in 2008. It is also bigger than QE2.

      Capital injection from the European Financial Stability Facility, the European Central Bank, and the International Monetary Fund are unlikely to be the big ‘bazooka’ the market is hoping for.  Ultimately, whether a solution is reached largely depends on developing a more coherent vision of the post-crisis landscape. That means politicians will have to actually do something.

      Europe doesn't seem to be any more able to find a consensus for action than Washington.

      "In a nation ruled by swine, all pigs are upwardly mobile." Hunter S. Thompson

      by Keith930 on Fri Nov 25, 2011 at 06:02:49 PM PST

      [ Parent ]

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