Monday, 10 October 2011 09:23 'Pardon while we chuckle, because $1 trillion, let alone $6 trillion, is never going to happen in Europe. Where do they plan to get the money, Euro Claus? Consisdering that the current proposal being voted on by all 17 Eurozone members calls for a fund of less than $500 billion, this new number, though more realistic in terms of the size needed to fix the problem, is a political impossibility, especially given the popular resistance among voters in France and Germany to bailouts for irresponsible neighboring countries.' Read more: Think Tank Says EU Bailout Fund Will Need $6 Trillion And France Will Lose AAA Rating Pardon while we chuckle, because $1 trillion, let alone $6 trillion, is never going to happen in Europe. Where do they plan to get the money, Euro Claus? Consisdering that the current proposal being voted on by all 17 Eurozone members calls for a fund of less than $500 billion, this new number, though more realistic in terms of the size needed to fix the problem, is a political impossibility, especially given the popular resistance among voters in France and Germany to bailouts for irresponsible neighboring countries. Excerpt: Many European policymakers are beginning to envisage the fund, known formally as the European financial stability facility, as a nascent eurozone treasury that could sit alongside the European Central Bank. It would be quickly tapped to deal with crises without relying on national parliaments, which cannot act at the speed demanded by markets. Senior officials have even begun referring to this future construction by a new name, the European Monetary Fund, which would operate like many other European Union institutions – with decisions taken by a qualified majority vote rather than unanimity. Such proposals will feature in a review of eurozone governance overseen by Herman Van Rompuy, the European Council president, next month Such an increase would mean France, whose triple A rating is essential to the market credibility of the EFSF, would see its debt levels rocket, at a time when its bond rating is already under scrutiny. “It’s just not conceivable to have a much larger EFSF and still have France as triple A,” said Mr Gros. --- DB here. Meanwhile UK Prime Minister David Cameron is in the news today calling for "a big bazooka approach to bailouts" warning they have only a few weeks to avert economic disaster. And Merkel and Sarkozy met again today and claim to have reached agreement on a massive EURO bank bailout, though neither would release details. Related stories: 
The Daily Bail
EUROZONE UPDATE -
Think Tank Says Bailout Fund Will Need
$6 Trillion And France Will Lose AAA Rating
Daniel Gros, director of the Centre for European Policy Studies think-tank, estimated that under some scenarios, the EFSF – and its successor, a permanent agency called the European Stability Mechanism – would have to be as big as €4,000bn ($5.6 trillion).
he MOST IMPORTANT Video We've Ever Posted
Hank Paulson Is A Criminal - Pass It On
Bernanke's Failures Caught On Tape
"The Federal Reserve Is A Ponzi Scheme"
THE FED UNDER FIRE: Must See Clip
Sarah Palin Is A Bailout Socialist
Paulson Is An Arsonist; He's An Outlaw
Bernanke's Replacement: Happy Hour In Santa Cruz
Must See: National Debt Road Trip
"Of Course We're Not Going To Payback the Chinese."
Dave Chappelle On White Collar Crime
Carlin: Wall Street Owns Washington
SLIDESHOW - The 11 States Most Likely to Go Bust
SLIDESHOW - 7 Really Big Holes - Don't Miss #7
SLIDESHOW - Molotov Cocktails In Greece
SLIDESHOW - The Sights, Sounds & Women of Texas
SLIDESHOW - Genius Signs From Irish IMF Protest
SLIDESHOW - Egyptian Revolution - Graphic PICS
SLIDESHOW - U.K. Student Riots
SLIDESHOW - Airport Security Cartoons - TSA
Tuesday, 11 October 2011
Posts
