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Euro Zone Periphery Hammered, Default Fears Rise

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http://uk.reuters.com/article/idUKTRE6AO1NY20101130

The euro zone's debt crisis deepened on Tuesday as investors pushed the spreads on Spanish, Italian and Belgian bonds to euro lifetime highs and Portugal warned of "intolerable risks" facing its banks.

The euro dipped below $1.30 for the first time since mid-September, immune to new attempts by European policymakers to calm markets hell-bent on testing the EU's determination to shield its financially weak members and increasingly nervous about the possibility of future euro zone defaults.

Two days after the bloc approved an 85 billion euro (72 billion pound) emergency aid package for Ireland, worries about contagion to Portugal and Spain persisted and the borrowing costs of large countries like Italy and France shot higher.

Markets are already discounting an eventual rescue of Portugal although the government in Lisbon denies, as Irish leaders initially did, that the country needs outside aid.

While a Portuguese rescue would be manageable, assistance for its larger neighbour Spain would sorely test EU resources, raise deeper questions about the integrity of the 12-year old currency area, and possibly spread contagion beyond Europe.

Italy, the euro zone's third largest economy, is now being referred to as "too big to fail" and "too big to bail."

Citigroup Chief Economist Willem Buiter described the turbulence hitting the euro zone as an "opening act" and predicted that sovereign default fears could soon extend to Japan and the United States.

"There is no such thing as an absolutely safe sovereign," he wrote in a research note.

Crisis what crisis it's all been contained all it took was bailing out the Greeks, then we set up a European wide bailout fund, then we bailed out the Irish and job done... :ph34r:

Now it appears we might have to feed the bailout junkies more bailout money. Luckily the printing presses are working overtime, we will just create more bailout funds until confidence returns to the countries seeking to send money they don't have via raising debt.

All you need is debt, all you need is debt,

All you need is debt, debt, debt is all you need.

Debt, debt, debt, debt, debt, debt, debt, debt, debt.

All you need is debt, all you need is debt,

All you need is debt, debt, debt is all you need.

There's nothing you can know that isn't known.

Nothing you can buy that isn't loaned.

Nowhere you can be that isn't where you're meant to be.

It's easy.

All you need is debt, all you need is debt,

All you need is debt, debt, debt is all you need.

All you need is debt (all together now)

All you need is debt (everybody)

All you need is debt, debt, debt is all you need.

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"Citigroup Chief Economist Willem Buiter described the turbulence hitting the euro zone as an "opening act" and predicted that sovereign default fears could soon extend to Japan and the United States."

If it get's to that stage, almost every major Western economy suffering from default or default fears what does everyone suggest the result will be? (I am asking a question here I'd be genuinely interested in peoples opinion).

At the end of the day the Governments of these countries have the guns and the ability to change the law as they please, and I think this would most definitely qualify as "national emergency", I suspect you would see the banking equivalent of martial law but I'd be interested in hearing what the alternatives would be

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Stand By Your Banks

© Tammy Wynette

Sometimes it's hard to be a country

Givin all your love, t' just the banks

Cause they'll have good times

And they'll have bad times

Doin' things, you don't

Understand

(whoah whoah whoah)

Stand By Your Banks

And tell the world you love 'em

And that you'll be proud of 'em

Just give them all the debt you caaaaaaaaaaaaaan

Stand By . . . Yo Banks!

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http://www.nytimes.com/2010/12/01/business/global/01bonds.html?_r=1&ref=business

Despite the commitment of 200 billion euros, or $260 billion, in bailout funds to Europe’s two most stricken nations — Greece and Ireland — institutional investors were unimpressed with the rescue effort this weekend of Ireland and continued to sell bond holdings in the weaker euro-zone economies.

But what is worse for the European Union and an increasingly stretched International Monetary Fund is that investors have begun to disgorge some of their positions in Belgium, Italy and even Germany.

Even as the yields on the 10-year bonds of Greece, Ireland, Portugal and Spain ended trading Tuesday off their highs for the day, attention in Brussels turned to the rise on Italian sovereign debt to 4.64 percent, of Belgian bonds to 3.97 percent and the recent increase of German bonds, the European benchmark, which at 2.67 percent were down from Monday but well above the 2.1 percent of last summer. Rising yields reflect increased risk in the eyes of investors as well as inflationary expectations.

Not that anyone expects Germany, by far Europe’s most powerful economy, to come close to defaulting on its debt. And neither Italy nor Belgium is considered in the same boat as Greece, Ireland and Portugal, since their deficits are lower and they borrow primarily from domestic lenders. Instead, the fear is that Europe’s strategy so far — painfully drawn out step-by-step bailouts of Greece and Ireland — has failed to impress the markets and that the burden to finance even larger rescues for Spain and perhaps even Italy would be too much for Germany to bear, both financially and politically.

Thankfully in no way shape or form is this contagion.

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Stand By Your Banks

© Tammy Wynette

Sometimes it's hard to be a country

Givin all your love, t' just the banks

Cause they'll have good times

And they'll have bad times

Doin' things, you don't

Understand

(whoah whoah whoah)

Stand By Your Banks

And tell the world you love 'em

And that you'll be proud of 'em

Just give them all the debt you caaaaaaaaaaaaaan

Stand By . . . Yo Banks!

Spooky, why does she look like the disguised "female" alien in the film "Mars attacks!"? :lol:

20-mars.jpg

Edited by madpenguin

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Spooky, why does she look like the disguised "female" alien in the film "Mars attacks"?

Quite possibly related. America is a 'melting pot' as you know.

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Oops.

http://www.ft.com/cms/s/0/cd1bcfc0-fcb2-11df-bfdd-00144feab49a.html?ftcamp=rss#axzz16nfCS8WQ

Eurozone banks hit by return of credit crunch

By Victor Mallet in Madrid and Peter Wise in Lisbon

...

The fear is spreading. Worries over sovereign creditworthiness are now affecting the private sector.

......

Far from making life easier for banks and businesses that need to tap the debt markets, the €85bn rescue package for Ireland risks having the opposite effect as government bond yields spike higher.

“The bond and credit markets are completely closed,” says one Spanish banker after days of sharply rising yields.

.......

In the bond markets, the last corporate deal from a Spanish, Portuguese or Irish company came from Iberdrola, the Spanish utility, on October 6.

Across Europe, there has been just one issue by a bank or company this week, says Dealogic, as the crisis has deepened and fears have grown it is spreading to Spain and Italy.

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Actually I'm quite relaxed about "reasonable" Martian immigration, it's those damn Moon Nazi's I worry about :D

I had no idea i wanted to see a film about nazis living in giant swastika on the moon...until i viewd this trailer

It proves at least one person ion the film industry still has some imagination

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I had no idea i wanted to see a film about nazis living in giant swastika on the moon...until i viewd this trailer

It proves at least one person ion the film industry still has some imagination

The guys behind it are Finnish and it will be a Finnish, German, Australian independent co production, shooting has started already in Frankfurt (disguised as New York) and also Australia.

Ironsky Website

My younger German friends 20-30s are excited as there are lots of conspiracy websites about Nazi UFO's and secret bases on the moon and the Antarctic and it's a really freaky idea, and by the way it will be a black comedy (as the guys behind it say "you think you could make a serious movie about Nazi flying saucers attacking from the Moon?") .

The request to send them money is serious, this started out as an idea kicked around on internet forums and grew to a proper movie, apparently they have enough to make the movie now, but are still trying to get the last little bit

As I understand it, it will be filmed with English dialogue

Edited by madpenguin

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The request to send them money is serious, this started out as an idea kicked around on internet forums and grew to a proper movie, apparently they have enough to make the movie now, but are still trying to get the last little bit

It would be nice to think one had contributed to such a thing's funding..thanks for drawing my attention to it

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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