Reports that Germany and France have begun talks to break up the Eurozone

Reports that Germany and France have begun talks to break-up the Eurozone

Fears that Europe's sovereign debt crisis was spiralling out of control have intensified as political chaos in Athens and Rome, and looming recession, created panic on world markets. Reports emerging from Brussels said that Germany and France had begun preliminary talks on a break-up of the eurozone, amid fears that Italy will be too big to rescue.

A bloodbath on the Markets today, all indexes down several percent. The reason being the Italian bond yields broke through the key 7% mark. For those that don't know, the higher percentage of bond yields for a country, the more it costs to borrow to pay of certain debts. Italy is now faced with the huge problem of bringing down borrowing costs that are spiraling out of control, and is going to need a bailout pretty soon.

Problem is, Italy is too big to bailout, with rough estimates being in the trillions. Nobody has trillions to lend Italy. Not another European country, not the ECB, not the IMF, no one. Unless they somehow manage to get this under control very soon Italy will follow Greece, and by soon it could be weeks.

Here is how today went down by the minutes; www.guardian.co.uk... ov/09/greece-prime-minister-italy-berlusconi-resigns
Or www.zerohedge.com... -financial-stocks-collapse

And just hours ago, to joinMF Global's Bankruptcy, we have Jefferson County filing for Chapter 9 Bankruptcy.

It may have taken us a Lehman like even to realise and correct the markets in 08, but it may just be a picking off of numerous firms that tip us over the edge this time.

What we are seeing people, are the dominos falling, you can stop the snowball rolling when it's small, but pay no attention and all you can do later on is get out the way. Heads up people.

All I can say is GOOD. Good riddance.

The break up of the Eurozone may hurt initially, but long term it will be so much better for the individual countries.

We'll make it through together. Trust.

No country will fall. I thought Merkel and Sarkozy left that pretty clear. As much as you americans want that to happen, you can just dream on.

reply to post by FermiFlux

Problem is, Italy is too big to bailout, with rough estimates being in the trillions. Nobody has trillions to lend Italy. Not another European country, not the ECB, not the IMF, no one.

*eyes the Federal Reserve nervously*

No one, you say...I hope you're right about that. I don't want to own a share in Italy if I'll never get any benefit out of it.

reply to post by Praetorius


I'd hate to be holding anything in Italy right now too! But I very much doubt the U.S can afford $1.4 trillion which is the estimated price of an Italian bail-out. If they did, you can be sure it would have been used as a QE3 already.

It would take 30 years to go out of this mess! However , the energy shock is coming before we can sort this Euro trouble. My advice: get some land and learn to be as self sufficient as possible. I allways believed in a soft landing for the world economy but the last few days are just warning me I could be wrong..

Originally posted by FOXMULDER147
All I can say is GOOD. Good riddance.

The break up of the Eurozone may hurt initially, but long term it will be so much better for the individual countries.

I don’t think you understand the implications of Italy failing. If it falls, all its creditors loss all their money they gave to Italy. The largest being France. The loses are so large that this will make all the banks in France fail, This will then make other banks fail in Germany and England, moving all the way over the pound to America resulting banks like BofA and JP Morgan Chase to fail. If these fail, it’s the end of the world as we know it.

This is no joke

Heard that in the news on TV. Well, not sure on how this can be done nor what will result after, but I guess it`s difficult the situation get`s much worse than it is now

Oh well, maybe tomorrow France and Germany leaders show up to deny it all after the "testing reaction" is caused by the media.

Originally posted by FermiFlux
reply to post by Praetorius

 

I'd hate to be holding anything in Italy right now too! But I very much doubt the U.S can afford $1.4 trillion which is the estimated price of an Italian bail-out. If they did, you can be sure it would have been used as a QE3 already.

Well...:


We can always just print more money, right? This is the way the Fed works. I personally didn't think we had enough money to extend $16 trillion or so in back-door loans, but apparently they don't see things the same way I do ('cause we can just print it or type it into computers, see!).

Oh, and QE3...yeah. They've been discussing it in the last few days, looks like it will be rolling out likely before too long. Ridiculous.

Originally posted by Praetorius

Originally posted by FermiFlux
reply to post by Praetorius

 

I'd hate to be holding anything in Italy right now too! But I very much doubt the U.S can afford $1.4 trillion which is the estimated price of an Italian bail-out. If they did, you can be sure it would have been used as a QE3 already.

Well...:

We can always just print more money, right? This is the way the Fed works. I personally didn't think we had enough money to extend $16 trillion or so in back-door loans, but apparently they don't see things the same way I do ('cause we can just print it or type it into computers, see!).

Oh, and QE3...yeah. They've been discussing it in the last few days, looks like it will be rolling out likely before too long. Ridiculous.

Argh, I can't stand Greenspan, but you're right. With this mentality American can do it, but only so much as China lets them. Remember, everytime a dollar is printed China's fortune takes a low-blow, they can only take so much before the swing back.

Originally posted by camaro68ss

Originally posted by FOXMULDER147
All I can say is GOOD. Good riddance.

The break up of the Eurozone may hurt initially, but long term it will be so much better for the individual countries.

I don’t think you understand the implications of Italy failing. If it falls, all its creditors loss all their money they gave to Italy. The largest being France. The loses are so large that this will make all the banks in France fail, This will then make other banks fail in Germany and England, moving all the way over the pound to America resulting banks like BofA and JP Morgan Chase to fail. If these fail, it’s the end of the world as we know it.

This is no joke

It's no joke. And I do understand the implications. However, the end of the world as we know it might not be a bad thing.

reply to post by FOXMULDER147


It wont be as bad for those that are prepared like you and me

reply to post by FermiFlux


OP might I recommend that you edit your link and use the title of the article instead of the URL as the link text. It's not working properly.

European debt crisis spiralling out of control

--------------------

This is very interesting news. I didn't think they would even consider something like this, though rumors of an EU break up over the sovereign debt crisis have been floating around for about 1 and a half years or so.

Good thread for a timely warning.... Math is a simple and basic language, and it says the end of our current economic system is near and nothing anyone does anymore can stop that. 16 Trillion in real debt is sitting at a near 0% interest rate. If the U.S. were to face 7% interest rates like Italy, it would be obvious to all that the game was up.

China not in a buying mood

^^ Where does Greenspan think we can print the money from this time?? Contrary to what they'd love people to think, we're never actually printing money out of thin air. We're printing debt for our kids. However, someone (another nation at these numbers) has to BUY that debt, which before now was never a question or problem. China isn't really happy about buying any more of our garbage though and Japan had been #2 on foreign U.S. Debt holders...so who is backing our printing this time around??

I agree with others here who are saying this is no drill at all. This could be just as devastating as any comet or asteroid. Perhaps more so for the effect on individual daily life for each of us. Our Leaders need to start Leading or we're all in for a period of time they'll be reading about in history books for hundreds of years to come.

Originally posted by projectvxn
reply to post by FermiFlux

 

OP might I recommend that you edit your link and use the title of the article instead of the URL as the link text. It's not working properly.

Thanks projectvxn, got it changed

reply to post by Wrabbit2000


I fully agree this will affect us more than any vaguely near-earth object at the moment. China cannot save us all, we reap what we sow and the reaping is upon us

lets see... tomorrow is Thurs, then Fri....
i see the French & Germans not talking 'serious' until Monday... then it will be another -400 point drop in the DOW


both nations see only a black-hole of financial destruction to bail out the other 15 laggards in the economic union

I am hoping this is the start of the end of the line for the Eurozone and the Euro. The sooner we (UK) get out, the better. It may be painful for awhile, but we will be better for it in the long run. The UK needs to rejoin EFTA.

Originally posted by St Udio
lets see... tomorrow is Thurs, then Fri....
i see the French & Germans not talking 'serious' until Monday... then it will be another -400 point drop in the DOW


both nations see only a black-hole of financial destruction to bail out the other 15 laggards in the economic union

Why wait?

Merkle has come out and said it here

If I read this article correctly...and I did read the whole thing carefully because the importance of what she just said and did cannot possibly be overstated IMO, she's calling for something like the United States of Europe as the inner core and the equivalent of protectorates to that central nation within the nations. I never thought I'd see the day, but the core of Europe looks to be about to form into a central power block on all levels.

I wonder how this relates to the Middle East and North Africa coming into chaos and slow alignment to what could form into a Caliphate or....the United States of Arabia?

I'm not sure if the times are interesting anymore or cursed.

This might be the start of the ruin of the world's economy. It appears that the dominos are falling and who knows how far this could go. If Europe goes the whole world will be severely impacted.

reply to post by FermiFlux


The eurozone is over, everyone should have kept their own currency like we (UK) have done. Our mighty £ will be our saviour.