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loriyacht (34.91)

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November 09, 2011 – Comments (7)

Does anyone think the Euro crisis will end well?  

Seriously, this is giving me deja vu to the 2008/2009 Lehman/AIG/FreddieMac news.  I keep seeing this picture in my mind:  Sarkozy and Merkel are standing behind a dyke and water is coming out from a leak.  They plug that leak and then another starts.  They plug that one and two or three more appear...  you know how that ends.

When the Euro began, I predicted it wouldn't last.  After all, these countries had just been shooting at each other 50 years before.  Then, about 10 years ago, I thought I had been wrong.  Now I'm thinking that I was right all along.

I just don't see a pretty ending here.  Lori 

 

 

 

 

 

7 Comments – Post Your Own

#1) On November 09, 2011 at 10:39 AM, walt373 (99.88) wrote:

It might be fixed if the ECB is used to backstop Italian bonds (i.e. monetizing debt). The longer they wait, the higher the yield gets and the harder it will be to push it back down. And it just blew past 7% today. I think they are about to completely lose control.

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#2) On November 09, 2011 at 1:01 PM, davejh23 (< 20) wrote:

"I think they are about to completely lose control."

I think they already lost control.  They've been running on rumor fumes for over a year.  I believe Walt is correct that the ECB will monetize debt.  What else can they do with half the countries in the EU falling apart with no individual options for increasing revenue, providing stimulus, etc...  It's either forced austerity or try to print your way out.  Unfortunately, both options probably lead to depression.

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#3) On November 09, 2011 at 3:15 PM, jesusfreakinco (28.24) wrote:

Germans won't monetize the debt because they have Weimar as their history.  They know what printing leads to...

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#4) On November 09, 2011 at 3:42 PM, wcaseym (39.70) wrote:

Does anyone think the Euro crisis will end well?

___________________________________________________

Perhaps not well, ... but good enough!  Lets look who sits at the controls: the G20, the EU, the G8, the IMF, WB, ECB and the FSB. These guys make rules. These guys play with fixed dice. They can - at a drop of a hat - nationalize banks, bail out countries, force taxes and austerity measures, recapitalize institutions, raise or lower interest rates, expand or contract the money supply, regulate or deregulate and in the course of it all, ... alter human behaviour!

In other words, financial disaster, of any kind, is pretty well impossible so long as the elites fend it off! But what do I know, ...

C.

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#5) On November 09, 2011 at 5:52 PM, dbjella (< 20) wrote:

Germans won't monetize the debt because they have Weimar as their history.  They know what printing leads to...

Aren't they "printing" when they run a deficit? 

 

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#6) On November 09, 2011 at 5:53 PM, dbjella (< 20) wrote:

Germans won't monetize the debt because they have Weimar as their history.  They know what printing leads to...

Aren't they "printing" when they run a deficit? 

 

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#7) On November 09, 2011 at 6:29 PM, CCharing (89.60) wrote:

although only a remote possibility, there's always China and Russia...

I think wait and see is appropriate here, it may not be wise to get to comfortable with the short positions.

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