| A Quadruple Whammy 12-16-10 mpg No European country will be abandoned, says Merkel Quotes of the Day - (in bold)...."BERLIN: German Chancellor Angela Merkel moved on Wednesday to silence fears of a eurozone break-up, saying that although some members faced tough challenges, Europe’s paymaster would not desert them. -- “No one in Europe will be left alone, no one in Europe will be abandoned,” Merkel said in a speech to the German parliament ahead of a summit of European Union leaders on Thursday and Friday set to be dominated by the euro crisis. “Europe succeeds when it acts together and I would add, Europe succeeds only when it acts together.” - also posted at WarInIraq Great sentiment and this website editor whole heartedly approves....BUT, Germany CANNOT afford to bail out the banks!! Bailing out members of the Euro community would have been just fine and dandy, but that is not what they did. They choose instead to bail out the EU's members banks, while at the same time instituting an old fashioned plan of austerity for the EU's wayward member nation states. You can do one or the other, but you can't do both....ever! If you try, it will just lead to financial disaster! They should have done what Bernanke did, printed and extended and dropped their interest rates to zero while negotiating a reasonable plan of recovery (some form of graduated austerity plan with bench marks and goal posts) for all those EU's members who needed to be helped And they should have also done what Bernanke didn't do, forced all those bad banks into reorganization, fired their top management and forced the bond holders and stock holders to take a hair cut. Unlike Bernanke however the EU didn't print, instead it gave "temporary loans" to the affected countries, forced the taxpayers in these countries to bail out their own Banksters, allowed interest rates to sky-rocket in the bond markets and finally, for all this "help" it gave to its EU member states, it demanded they undergo a series of austerity programs of ever increasing intensity. In other words subjecting the affected, or should one say afflicted, EU states to the quadruple whammy of...
This is not a recipe for financial success. - mpg Topix - || The First Salvos of the Currency Wars - 05-07-10 - mpg || |