Defense By Dilution Into The Digital Age
(Bloomberg) -- European leaders agreed to set up an emergency fund to halt the spread of Greece’s fiscal woes, seeking to prevent a sovereign debt crisis from shattering confidence in the 11-year-old euro.
Jolted into action by the sliding currency and soaring bond yields in Portugal and Spain, leaders of the 16 euro countries said the workings of the financial backstop will be hammered out before Asian markets open late tomorrow European time.
“We will defend the euro, whatever it takes,” European Commission President Jose Barroso told reporters early today after the leaders met in Brussels.
Europe’s failure to contain Greece’s fiscal crisis triggered a 4.3 percent drop in the euro this week, the biggest weekly decline since October 2008. And it prompted the U.S. and Asia to rally around in a bid to prevent a global sovereign-debt crisis from pitching the world back into a recession.
“Europe is getting its act together,” said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York. “Time will tell if this statement is enough to satisfy the European bond market vigilantes.”
European officials declined to disclose the size of the stabilization fund, to be made up of money borrowed by the European Union’s central authorities with guarantees by national governments. Finance ministers will meet at 3 p.m. tomorrow in Brussels to flesh out the details. A press briefing is scheduled for 6 p.m.
“When the markets re-open Monday, we will have in place a mechanism to defend the euro,” French President Nicolas Sarkozy said. “If you don’t think that’s significant, you haven’t been to many EU summits.”
RUMOR MILL HAS IT AROUND $600 BILLION EUROS...THAT USED TO BE ABOUT A TRILLION DOLLARS.
So we are going to solve an insolvency due to too much debt by adding about a trillion of new debt?
I went out to a movie with my son last....the movie ticket was $10 for one.......popcorn and coke about the same.......a cup of ice cream in the mall was $6.....and gas is now $3 a gallon for regular.....
We are heading toward an interesting cross roads as we know governments, banks, and public companies are lying about their balance sheets vs. the balance sheets of households are deteriorating as wages fall and prices skyrocket.
As a household you can't lie about your balance sheet.....but if you are a banker or politician, you can lie all day long and borrow as much as you need to buy your kids and wife anything they desire.....with your borrowed money.....
WHAT IS THE DIFFERENCE IF YOU DON'T HAVE MONEY OR ALL YOUR MONEY BUYS YOU NOTHING?
The Greek people have figured this out.......the rest of the world will too.....
If few can lie.....all should be able to lie......or no one should lie.