Europe Getting Smashed, US Futures Slide, As European Commission President Basically Admits Defeat

Euro crisis: Barroso warns debt crisis is spreading

European Commission President Jose Manuel Barroso has warned that the sovereign debt crisis is spreading beyond the periphery of the eurozone.

He described the bond markets' treatment of Italy and Spain as "a cause of deep concern".

[link to www.bbc.co.uk]

Debt crisis: live

Rolling coverage of the rollercoaster in financial markets as the eurozone and US come under increasing pressure to deal with high levels of debt and stave off another recession.

[link to www.telegraph.co.uk]

I wonder how much longer will it take the clowns like Baroso and co. being forced to leave ... and prosecuted for gross financial crimes.

Italy Getting Destroyed This Morning, As Proof Emerges That It's Driving The World Lower

Two things to realize about Italy today.

First, it's getting destroyed again.

FTSE MIB off over 2.2%.

[link to www.businessinsider.com]

Seems like a race..who's the first to default,Europe or the US.
Big charade,there's no turning back to the good old days..there's simply too much debt.
Time for change...who said that?

We`re closely tied with the German economy....So, if Germany does well, we will do too....Germany was playing catch up, because they`ve done bad after the reunion with East-Germany for a long period and Germany profited maximum from all the Chinese stimulus.

The owners of FED and EUR are the same peeps IMO.

We can`t go back to how it was, because of peak everything....

Watch this, from 13:00....

[link to maxkeiser.com]

The crisis wasn`t because of the housing bubble, but because of the high oil price ( just happened again, little growth got killed instant, because oil prices went up again ). And without exponential growth economies get in debt trouble ( Italy, Spain, Ireland, Portugal, Greece ).

Doesn't our hero Nigel Farage have something to say about this whole charade of the EU being in control?

Would absolutely love to see that smirk on his face when he tells Gollum van Rompuy a told you so and then applauds to him for going down.

'Age of cheap oil is over'

[link to geology.com]

This is about exponential growth and how it can`t go on....

The Most IMPORTANT Video You'll Ever See

[link to www.youtube.com]

Nigel Farage is great.

If Italy goes, the whole EU goes.

Italy is way bigger than Greece, Portugal or Ireland....it`s the seventh economy in the world.

Debt-laden Italy is likely to default !

Debt-laden Italy is likely to default, but Spain might just avoid it, according to the British think tank, the Centre for Economics and Business Research.

With the countries weighed down by debt, the think tank modelled "good" and "bad" economic scenarios for both.

It found that Italy will not avoid default unless it sees an unlikely big jump in economic growth.

[link to www.bbc.co.uk]

Italian Banks Caught in Sovereign Debt Crossfire

The sell-off in Italian debt pushed 10-year yields above the 6 percent mark. Above this level, concerns about the cost of refinancing Italy's 1.6 trillion euro debt intensify.

"Six percent was seen as a line in the sand for yields and now that that's gone, people don't want any risk apart from Germany," said a London-based bond trader.

"If spread levels do not come back from current levels, Italian banks will have to pay a fortune, literally, to refinance their debt next year," a London-based banking analyst said.

[link to www.banktech.com]

The press conference is over, and amid the statements, questons and answers, here's a summary of what Trichet has said:

• The ECB is to provide unlimited cash to banks for six months in an effort to calm markets.

• It is continuing to "monitor very closely" any price risks. This means that there will be no imminent interest rate hikes, although there could still be a hike before the end of the year.

• On economic growth, the ECB expects "continued moderate expansion," although Trichet conceded "we are experiencing a high level of uncertainty not just in the eurozone"

-------------------------------------------------------------​-

If Trichet's statement was meant to calm Italian and Spanish bond markets, it's had the opposite effect.

Ten-year Italian government bond yields are currently at 6.177pc and rising. This is only slightly lower than the euro-era high of 6.233 seen yesterday.

Spanish bond yields are at 6.284pc, also flirting with highs of 6.426pc

[link to www.telegraph.co.uk]

The European Central Bank intervened in markets buying Portuguese and Irish bonds while its president, Jean-Claude Trichet, told journalists the bank's bond-buying program was not dormant.

Traders quoted by Reuters said the central bank was buying the bonds in the secondary market just after Trichet said, answering a question about its SMP program: "I would not be surprised if by the end of this teleconference you will see something on the market."

Trichet refused to comment when being challenged as to why the ECB bought only Portuguese and Irish bonds, not Italian ones.

That leaves the ECB as just about the only bulwark against market attacks on Italy and Spain in the short-term.

[link to www.cnbc.com]

Now dat's a spice meatabol :)

Unlimited supply of cash, eh? Surely allnthe ordinary folks are gonna see through this BS soon? TPTB don't actuallynknow what to do.

The Spanish Treasury has announced it has suspended a bond auction that was due on August 18, according to Reuters. It will issue a new five-year bond on September 1.

[link to www.telegraph.co.uk]

[link to www.boursorama.com]

closing -3.90%

Investors panic as FTSE drops 3.5%

[link to www.whatinvestment.co.uk]

Bloodbath: FTSE slumps amid fears for world economy

[link to www.politics.co.uk]

Thanks for the good links and the pin people.

Is Gemany Facing a Risk of Recession?

The Germany economy is the strongest in Europe; time and again we have been told it is powering ahead. It has just demonstrated record growth performances. So where could one possibly get the idea that Germany might be in for a double-dip recession? Must be the summer Spanish heat.

Perhaps the idea is not as absurd as it seems at first sight. Try taking a look at this chart for starters. This is what just happened to the German manufacturing industry.

[link to seekingalpha.com]

Meltdown: £120bn wiped off FTSE 100 in five days as markets around the world go into freefall

[link to www.dailymail.co.uk]

I don't know if it's just me but the phrase Hegelian Dialectic sprung to mind as I read about ECB offering financial assistance.

Create a crisis, people panic, help is offered to save the day

I may be wrong about this but ......