9-May-10 News -- Europeans to make historic announcement

[John]

9-May-10 News -- Europeans to make historic announcement to stop global panic

** 9-May-10 News -- Europeans to make historic announcement to stop global panic
** http://www.generationaldynamics.com/cgi ... 09#e100509

Contents:
"European leaders will be making a historic announcement on Sunday evening"
"The spreading crisis"
"Palestinian Liberation Organization agrees to 'proximity talks' with Israel"
"Additional links"

[vincecate]

Europe is jumping the bounds of rule of law. Using article 122 which covers when member states are threatened with "natural disasters or exceptional occurrences beyond its control" the European union will begin bailing out countries with too much debt, which was clearly their own fault. I doubt the markets will like this.

http://globaleconomicanalysis.blogspot. ... ilout.html

[vincecate]

Oh, and I think the real reason there is trouble with the Euro is that the central bank started breaking its own rules when it said that junk bonds from Greece would count as collateral.
This will result in more money printing, which is bad for the Euro. If they hand simply said "we will not be kicking anyone out of the Eruozone, even if their government is bankrupt" and let Greece default the Euro would have been ok. But now it is in trouble.

http://www.bloomberg.com/apps/news?pid= ... AygysllnxM

[John]

Oh, and I think the real reason there is trouble with the Euro is that the central bank started breaking its own rules when it said that junk bonds from Greece would count as collateral.
This will result in more money printing, which is bad for the Euro. If they hand simply said "we will not be kicking anyone out of the Eruozone, even if their government is bankrupt" and let Greece default the Euro would have been ok. But now it is in trouble.

http://www.bloomberg.com/apps/news?pid= ... AygysllnxM

I would respond that the euro was in a great deal of trouble long before last Monday,
when the ECB made this announcement. Everything that's been happening recently,
especially in the last couple of weeks, has been out of sheer desperation.

John

[thomasglee]

Like many, I pay close attention to the words people use (especially politicians). Therefore, I found BHO's words very telling;

If we can stabilize Europe that will be good for the United States."

It seems he is not as full of his usual swagger and confidence. Otherwise, he would have said, once... instead of If...

[John]

Dear Thomas,

Like many, I pay close attention to the words people use (especially politicians). Therefore, I found BHO's words very telling;

If we can stabilize Europe that will be good for the United States."

It seems he is not as full of his usual swagger and confidence. Otherwise, he would have said, once... instead of If...

I hadn't thought of that, but you're absolutely right. Obama is definitely signaling
a lack of confidence that this is going to work.

John

[vincecate]

I would respond that the euro was in a great deal of trouble long before last Monday,
when the ECB made this announcement. Everything that's been happening recently,
especially in the last couple of weeks, has been out of sheer desperation.

John

I agree they are at sheer desperation. But the central bank had seemed to be mostly staying out of it till Monday. The various government folks were yapping and running around for a long time. Once the central bank starts breaking the rules it seems really bad for a currency. We did get a really rapid drop in the Euro last week, and I think it was because of Monday's announcement.

I think this European Union bending/breaking the rules will also be bad for Europe.

I had thought the US dollar crisis would come before the Euro crisis. Seems I was wrong.