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Eurozone Must Refinance 900,000,000,000 In 2011


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http://www.telegraph.co.uk/finance/financetopics/financialcrisis/8234231/European-debt-markets-face-second-credit-crisis.html

Financial Crisis

European debt markets 'face second credit crisis'
European debt markets could be hit by a second credit crisis within months as fears grow over the huge volume of new bonds that must be sold by governments and banks in 2011.
Banks alone must refinance about €400bn (£343bn) of debt in the first half of the year, but add in the more than €500bn European governments must replace over the same period, as well as further hundreds of billions of euros of mortgage-backed debt maturing and there is the potential for chaos in the credit markets.
"What we are looking at here clearly has the potential to become a second credit crunch. However, this time it would be much worse than before," said Celestino Amore, founder of IlliquidX, which specialises in trading hard-to-price debt.

So far, the market has been ingnoring this rather large Elephant that is still sitting in the EU living room. Lot of trouble ahead in 2011 for the Eurozone.

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Banks alone must refinance about €400bn (£343bn) of debt in the first half of the year, but add in the more than €500bn European governments must replace over the same period, as well as further hundreds of billions of euros of mortgage-backed debt maturing and there is the potential for chaos in the credit markets.

It's all contained.

As long as banks keep buying each other's debt and countries keep buying each other's debt - what can go wrong?

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Estonia :blink: what were they thinking! I heard a lady on the street interviewed there that even though the Euro was in a mess she still felt better that they were a part of it. Such a nice looking ship that people are happy to go down with it?

Join the Euro and get lots of bennies paid for by the UK, Germany and France. Subsidies up to the wazoo!

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