27-Nov-10 News -- Europe torn as financial crisis hits Spain

[John]

27-Nov-10 News -- Europe is torn apart as financial crisis hits Spain

North Korea threatens imminent war with South Korea

** 27-Nov-10 News -- Europe is torn apart as financial crisis hits Spain
** http://www.generationaldynamics.com/cgi ... 27#e101127

Contents:
"Europe is torn apart as Spain's bond become target of panic selling"
"North Korea threatens imminent war with South Korea"
"Additional links"
Putin says that Russia might drop the ruble and adopt the euro
Haiti cholera victims being buried in mass graves
Saudi Arabia arrests 149 terror suspects
India commemorates the massive 11/26/2008 terrorist attack on Mumbai

[mannfm11]

John, the Irish crisis is due to bank losses and not government deficit spending. In order to assure stability, Ireland had to guarantee their bank debt. I say the Irish tell them to go to hell. Banks all over Europe and the United States engaged in speculative lending on more houses in Ireland than could be occupied. To bend the Irish people over for mistakes made by banks around the world is absolute nonsense. The banks didn't come in under a government guarantee and to expect one in retrospect and expect many people not involved at all in the transactions to fall into debt peonage is unconscionable. Had this been a venture by McDonalds and they lost $10 billion trying to get into the Irish economy, would they have had recourse? Bankers are supposed to take care in making loans. They have a history of hundreds of years of bubbles and what constitutes a bubble. This isn't the first real estate bubble in history. All the others broke the banks as well. The bankers were flat stupid and all involved are going to have to take a haircut. There is nothing but a pretense this isn't going to happen and the longer it takes, the more people not involved are going to be hurt and the more those that caused the problem are going to steal. Bankrupts are supposed to not be loaning money.

[Guest]

John, the Irish crisis is due to bank losses and not government deficit spending. In order to assure stability, Ireland had to guarantee their bank debt.

This is absolutely correct and is what makes the Irish situation different than Greece. Then odd "solution" put forth in the bailout would have, in essence, Great Britain loan money to the Irish government which would then loan money to the Irish banks, which would then, in turn, repay money owed to British banks who then pay taxes on their profits to the British government. Somewhere along the line this chain will fail. The only question is when.

[mannfm11]

An amazing bunch of BS isn't it guest? I hate to say it, but the depositors are going to have to take the bath as are the shareholders of the banks and the bond holders. The assets of the banks, whether we are talking loans or central bank QE swaps, will not support the deposits. The balance sheets are going to have to be re-arranged. I suggest a diminishing deposit insurance, with the balance paid in stock. They could fix this if they would treat a bank like they treat a failed restaurant.