Monday, 12 September 2011

Another Day, Another Euro Crisis

Everywhere you look this morning there's bad economic news, a combination of Vicker's report this morning but more predictably the growing Eurozone problems.

Germany appears to be laying the ground for a Greek default and exit. German finance minister Philipp Rösler said Greek bankruptcy was "no longer a taboo" a view shared by Merkel. Christian Lindner, general secretary of Chancellor Angela Merkel's junior FDP coalition partner, said Greece's departure from the eurozone "could not be ruled out". Views that would have been unthinkable a couple months ago are now being openingly expressed. Germany's patience therefore appears to have run out.

The Greek bailout is also in chaos with the EU refusing further funds unless there's firm action on the deficit, including disturbingly:
Germany’s EU commissioner Günther Oettinger said Europe should send blue helmets to take control of Greek tax collection and liquidate state assets.
The Greek chaos, and the apparent acceptance of German of a Greek default, has wrecked havoc on French Banks who are highly exposed to Greek debt. Shares in the big three - Société Générale, Credit Agricole and BNP Paribas - all suffered double-digit losses. There are also rumours that Moody's is going to downgrade French banks due to their Greek exposure

Italian, French Spanish and German bonds are at all new records while the money is going to safe havens like gold which is at new record high in Euros.

Global stock markets are down. Oh, and the Euro has plummeted.


  1. Shall I get the popcorn on yet?

    You might like this

  2. @James It looks as if the summer shenanigans is coming to a head (again). The French banks look in big trouble this morning. At least Jeremy Warner of the Telegraph thinks so:!/jeremywarnerUK/status/113549641286553600

    @Anon, I'd get some popcorn on but save some just in case - the Euro has almost magical properties in the art of surviving. Thanks for the link.