Euro Area Risks Breakup

Euro Area Risks Breakup, Subprime Bear Hayman Says (Update1)
www.bloomberg.com...
Feb. 27 (Bloomberg) -- Hayman Advisors LP, the firm that earned $500 million betting on the U.S. subprime mortgage-market collapse, says Europe’s monetary union is about to fall apart.

Richard Howard, a managing director for global markets at Dallas-based Hayman, said Germany may opt to shore up its own economy, Europe’s biggest, rather than bail out fellow euro nations such as Austria, Italy and Spain as their banks sag under the weight of bad debts. That might lead to defaults and compel Germany to renounce the euro, he said.

“People said subprime could never blow up but it did and now they’re saying the exact same thing about the eurozone,” said Howard. “There’s no stopping what is now a downward spiral.” He declined to discuss his investments.

Seems more & more are hopping on the Bandwagon...

Well there goes the "solution". Now what kind of crackpot thing are they going to come up with. A one world currency isn't going to fly. They had a hard enough time getting all the countries to join the EU and adopt the Euro in the first place.

Why do people keep repeating history, thinking that they can make it work. I don't get it.

So now the EU and as a result Europe is going to go into a depression, this is the stuff that wars get fought over.

Originally posted by Hx3_1963
Richard Howard, a managing director for global markets at Dallas-based Hayman, said Germany may opt to shore up its own economy, Europe’s biggest, rather than bail out fellow euro nations such as Austria, Italy and Spain as their banks sag under the weight of bad debts.

My apologies for completely ruining this thread as soon as it was created but might I add for those on this site that are ignorant to EU law that:

Under EU law, large/massive economies like Germany, France, the UK, Spain and Italy.. most of which are not under that much pressure from the economic difficulties..

Are not legally allowed to help other EU member states through financial difficulties in the form of lending and bailouts..

This is an EU matter.. not a cross member state problem.

The member state, Brussels and the ECB are legally allowed to deal with this problem... no one else. This is why this article is completely devoid of fact!

You can find this out through basically any internet based outlet on EU law... It is common knowledge to anyone who has been living in the EU since the global credit crises started.. I have even read in in an article on the front page of one of the main national Irish newspapers in the past fortnight.

Also.

1) Austria is not under any real difficulty.. anything else you hear is complete rubbish... full stop.

2) Spain and Italy have been borderline recessionary for the past two years.. Spain is in pretty big difficulty now.. but still approx the same as the US is forecast to be in mid 09... So any sensationalist nonsense is still sensationalist nonsense!


I know this is a conspiracy site but truth has to be told at times.. sorry.

How the Crisis Is Hitting Europe
Its economy harbored far more risk than most people realized, and businesses are more in hock than their U.S. counterparts
www.businessweek.com...

reply to post by Dermo
Your probley right, but, I've seen similiar in other articles about some of these scenerios. There's more than just this one guy talking about possibilitys...

[edit on 2/27/2009 by Hx3_1963]

Originally posted by Hx3_1963
How the Crisis Is Hitting Europe

See... what is going to happen more and more in EU countries over the whole GM thing is that..

EU countries (finland, germany etc) and their people are going to get so pissed off at the fact that GM, while it was so badly managed in the US, bought out profitable, reputable car companies in the EU over the past decade and are now closing/selling them off because their US sales base has collapsed due to shoddy management...

This is fact.. see SAAB and OPEL for example.

reply to post by Dermo
Just so ya know...

Financial crisis tests European Commission authority
euobserver.com...

Merkel Urges East Europeans to Spell Out Woes as Aid Calls Grow
www.bloomberg.com...

Ex-Bundesbank Chief Says Euro Nation Default Possible (Update2)
www.bloomberg.com...

Originally posted by Hx3_1963
Your probley right, but, I've seen similiar in other articles about some of these scenerios. There's more than just this one guy talking about possibilitys...

I guarantee that I am correct about what I said in my first post.. I watched a full speech by Jean Claud Trichet (ECB President) yesterday in Dublin while he explained the implications of the above in respect of the smaller EU economies and how they are going to have to sort their books only with the help of Brussels and not other member states. Germany was looking to invest on some of the smaller weakening EU economies for a good investment return but was blocked by the EU.

By being on this site so much, you have to realize that MSM and other continental based media companies do twist the truth in order to strengthen the economies they are based in or their own interests for what ever reasons.

The US media outlets are renowned for being one of the worlds biggest propaganda outlets.. its unfortunate at the moment but you should find it hard to believe anything that comes from them that refers to any large scale offshore, non US organization.

double post

[edit on 27/2/09 by Dermo]

reply to post by Dermo
OK no problemo...you got me on the MSM angle. You actually live in the community and have a better grasp of events than I do overseas' so I'll take your word on this for now...hope they get it figured out...

Originally posted by Hx3_1963
reply to post by Dermo

 

Just so ya know...

I can see your interest in this and appreciate it but might I add that many Americans take Europe or the EU to be a singular entity when in fact it is nothing like that... It is like a country in many regards but still completely separate in most respects.

I have briefly explained your points contrary to your perceptions.. you can spot my points if you re read the articles from a factual perspective.

Financial crisis tests European Commission authority
euobserver.com...

The EU commission authority is basically pushing member states that have found difficulty through this crises to adhere to the legal EU deficit budgets.. which is approx 2%. Some have broken this rule.. and this is where new loopholes have been created to allow this.

Might I add, the US deficit is going to be approx 10-12% this year.. Big difference!


Merkel Urges East Europeans to Spell Out Woes as Aid Calls Grow
www.bloomberg.com...

Eastern EU member states are a new EU investment and are still developing their infrastructures.. Merkel, the german Chancellor, was basically asking them to honestly state their issues and problems with their economic circumstances and deficits. It states that clearly in this article.

Ex-Bundesbank Chief Says Euro Nation Default Possible (Update2)
www.bloomberg.com...

Euro nations -> Single EU nations.. the states in question have only between 2 million and 15 million citizens.. all are newly invested developing EU countries that are easily subjected to these problems as a result of the crises... these are the ones he is talking about if you read back over it.

This is like 1/3 of California going broke... which has already happened X3.

Originally posted by Hx3_1963
reply to post by Dermo

 

OK no problemo..

Cheers mate, you are more understanding than most on this site

Many here seem to dwell on the idea that the whole world is falling apart is areas that they have never been in contact with... which is more likely to give them high blood pressure than anything else.

I can say honestly that I have been in Germany, Austria, the UK and Ireland in the past fortnight and there is absolutely nothing out of the ordinary going on other than a few protests over Job losses and bank bailouts.. which are bound to happen anyway. Eastern is in a bit of difficulty but it is still a developing investment and is bound to suffer in a credit crises.