God's gift to Wall Street, Secretary Treasury Tim Geithner, says he has finally convinced Europe that the world will end if Europe doesn't bail everyone out the way the US did.
On ABC's World News With Diane Sawyer, Geithner said that Europe finally gets it:
http://www.businessinsider.com/geithner-europe-bailout-2011-9
Read more: http://www.businessinsider.com/federico-ghizzoni-attila-szalay-berzeviczy-unicredit-warning-2011#ixzz1ZKAfFtj0
As for the assurances of Mr Schauble, either he really is lying, in which case there will be all Hell to pay in the Bundestag, and most likely a massive political backlash that will change German politics profoundly.
Or he is not lying, in which case there is no plan to save the eurozone, and we therefore face the mounting risk of a spiral into a banking crash, serial sovereign defaults, and a disorderly break-up of EMU.
Not pretty.
One of the benefits of being an academic economist is that market participants and government officials will often tell you what they think in relatively frank terms.
Here is what I learned in dozens of meetings last week in Frankfurt, Madrid and London:
http://www.bloomberg.com/news/2011-09-29/euro-area-s-rescue-options-are-shrinking-fast-commentary-by-anil-kashyap.html
http://www.youtube.com/watch?v=TxPFZra8MuM
The Euro is in fact a shield that has protected many of our economies, and is a factor for stability and prosperity ???
He was also in great form attacking Sir Richard Lambert for his stance many years ago when working for the FT in 1996 stating Britain should join the Euro. If ever there was a time to push better off out this is the time especially the EU pushing for a financial transaction fee from Britain.
Europe in crisis
On tonight's Newsnight Paul Mason will be asking whether Europe and the world banking system is on the edge of catastrophe. He'll look at fears that the so-called rescue plan for the eurozone is already in trouble and will consider what would happen if the euro ultimately broke up.
We'll be joined by the European Commission, Johanna Kyrklund from Shroders, economist and former DG of the CBI Sir Richard Lambert, and Peter Oborne from the Daily Telegraph to debate if the euro project is worth saving.
We have a film about social breakdown amid austerity in Greece, and we'll hear from our correspondent Peter Marshall in Berlin - where Chancellor Angela Merkel faces a vote tomorrow that threatens to weaken her politically and undermine her ability to manage the debt crisis.
Plus we'll have an interview with Labour leader Ed Miliband.
Do join Jeremy for all that and more at 2230 on BBC Two.
http://www.zerohedge.com/news/no-more-shorting-financials-europe-ever
Step Aside BBC "Trader": Head Of UniCredit Securities Predicts Imminent End Of The Eurozone And A Global Financial Apocalypse
http://www.zerohedge.com/news/step-aside-bbc-trader-head-unicredit-securities-predicts-imminent-end-eurozone-and-global-finan
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