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it will start in Europe
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People it will start in Europe
Source
[link to www.europeanvoice.com]
Less than 50%
There was more to come. As the end of August approached, just as the markets were beginning to calm down, another problem emerged. This time it was back to the politics of the 21 July agreement.
A bilateral deal was struck that would see Finland receive collateral from Greece in return for its participation in the bail-out. Despite this being expressly permitted in the conclusions of the summit (and indeed it was a deal-breaker for the Finns), it did not go down well with other governments, some of whom said that if Finland could get such an arrangement then so should they.
Moody's, a credit-rating agency, wearily warned that “if more and more of the rescuing countries end up making collateral demands, Greece will not be able to fully meet them, thus jeopardising the rescue plan”. Now it looks as if other member states will block the move anyway.
The summit on 21 July was supposed to be the beginning of the end of the crisis. Measures hitherto considered taboo because of political sensitivities were finally agreed upon and the mood was positive. But the events of the past six weeks have demonstrated that politicians have still not got a grip on this crisis. Analysts are still talking about the need to double or treble the size of the European Financial Stability Facility and urging the introduction of eurobonds just as they were before.
A lack of decisiveness, plain-speaking, courage and co-ordination immediately before and during the summer break has left the eurozone looking as vulnerable as ever.
Source
[link to www.voxeu.org]
Less than 50%
In this crisis, Eurozone leaders’ motto seems to be “too little too late”.
They got it badly wrong the first weekend in May 2010.
Having announced that they had saved Greece, financial markets said “not good enough”. The next weekend they came up with a more substantial plan, but even this proved to be too little too late.
After months of living in denial, Eurozone leaders finally recognised that Greece was not going to be able to restart borrowing on its own. They came up with another plan. On 21 July 2011, they got it badly wrong again. Financial markets are again said “not good enough”.
On August 16 Chancellor Merkel and President Sarkozy held a widely-trumpeted “summit” to announce decisions that were either irrelevant or misguided. Stock markets around the world said “not good enough”. Even more ominously, the interbank market is seizing up, as it did in 2007 on the way to the Lehman disaster.
I always thought this “shell game” the world is playing with would start here in the states but the more I learn the more I read I feel it will start in Europe. One of the things all most all analysis say is “ just one major disaster ..one major hic up” and boom down it goes.
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