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As European Banks start going down cracks appear in the Euro zone

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posted on Oct, 6 2008 @ 01:16 PM
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Im not at all surprised, that individual nations are taking a step back to pooling money to help banks located outside thier borders.

The comment from the German Finance and PM



Germany's Finance Minister Peer Steinbrueck made clear his government's opposition to the idea that the euro zone's single largest economy should put up money to prop up institutions outside his country.

He said Monday that he and Chancellor Angela Merkel were considering creating a "shield" that would protect the country's entire financial sector, and that a Europe-wide shield or bailout was out of the question. "The chancellor and I reject a European shield because we as Germans do not want to pay into a big pot where we do not have control and do not know where German money might be used," he said in a separate interview with WDR 2 radio.

Germany deepened the sense that events were beginning to run out of control when German Chancellor Angela Merkel said on Sunday that her government would guarantee all private bank savings and CDs held in the country. "We want to tell people that their savings are safe," she said.
news.yahoo.com...


You can be allies, frineds, brothers untill money is on the line and all bets are off. However, if several EU contries start to go down actions like this will only serve to dealy the enevitable IMHO and it would only be a matter of time till the EU single biggest economy took its lumps as well.

[edit on 10/6/08 by FredT]




posted on Oct, 6 2008 @ 01:17 PM
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GOOD!

Let the EVIL EU fall to pieces!

NATIONAL SOVEREIGNTY WILL PREVAIL!



posted on Oct, 6 2008 @ 01:19 PM
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The "every man for himself" mentallity is already setting in and this is only the beginning.


So much for the "European Union".

[edit on 10/6/08 by BlackOps719]



posted on Oct, 6 2008 @ 01:23 PM
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you do know that the current european problems are a direct result from your mortgage crisis right?



posted on Oct, 6 2008 @ 01:27 PM
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reply to post by Roosje
 


From my understanding you had a bit of a mortgage mess yourselves over there.



posted on Oct, 6 2008 @ 01:32 PM
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there is some mess in spain. Don't know where that came from, but i only heard from it a few months ago. And in the UK, for all i know. But in Holland the only "problem" is that people that had interest rates of 3,5 % now are going to pay 6%. But that's not that big of a deal



posted on Oct, 6 2008 @ 01:47 PM
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Originally posted by Roosje
.... But in Holland the only "problem" is that people that had interest rates of 3,5 % now are going to pay 6%. But that's not that big of a deal


Apparently there a many who think it is a 'big deal'. In particular, the transnational banks that get to play with all the make-believe money.



posted on Oct, 6 2008 @ 02:10 PM
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The higher interest rate is hardly a problem. Banks only give about 5 times the anual salary for a mortgage. In 10 years we may assume that the salaries have increased more than the mortgage costs extra.

What the european problem is, is having invested in High Risk mortgage stuff in the states (don;t know the details...sorry). The european banks are losing a lot of money this way. Combine this with people that are getting scared by all the bad news that they hurry to get their savings from the bank. And people stop spending money now but still have a lot of debt. There is just too little money going around....And banks need money.

But hey...this is just my interpretation of what is going on in Holland. I might be completely wrong...I only studied economics for 4 days


[edit on 6/10/2008 by Roosje]



posted on Oct, 6 2008 @ 02:15 PM
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Everything that is going on around the European banks or let say global banks is linked to the mortgage crisis that originated in the US.

What people doesn't understand here in America is that while the banks in Europe or global banks keep falling, they will be getting to dip in the big American bail out thanks to the anti-tax payer bail out bill.

So can anybody see the lines waiting for the money give away?

I am still wondering how America is planning to pay for all the loses that as long as they are linked to the mortgage crisis every bank around the work will be bailed out.

Our future is not looking very good at least for the hard working tax payer in this nation.



posted on Oct, 6 2008 @ 02:26 PM
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Originally posted by Roosje
there is some mess in spain. Don't know where that came from, but i only heard from it a few months ago. And in the UK, for all i know. But in Holland the only "problem" is that people that had interest rates of 3,5 % now are going to pay 6%. But that's not that big of a deal


I live in Spain and was told at the beginning of this year that the banks here weren't lending on any mortgages. I was going to remortgage my property which only has a 70% mortgage on it and I was hoping to increase it to 80%.

Rather than pay for valuations and bank charges (for even looking at giving me a mortgage) I decided to wait it out. Probably even less chance of them lending now.

The housing market here has definitely slowed, lots of Brits have packed up and gone back to England but that's not really an option for us with 3 children in Spanish schools. I don't think moving back to England will really help anyway with things as they are.

As for work - we've had 2 large contracts put off till the beginning of next year and that has really put the squeeze on. We're just about scraping by at the moment so things are pretty grim here too but at least the sun is shining!



posted on Oct, 6 2008 @ 02:31 PM
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Originally posted by FredT
Im not at all surprised, that individual nations are taking a step back to pooling money to help banks located outside thier borders.

[...]

You can be allies, frineds, brothers untill money is on the line and all bets are off. However, if several EU contries start to go down actions like this will only serve to dealy the enevitable IMHO and it would only be a matter of time till the EU single biggest economy took its lumps as well.




Common now................................

who is the Ghost Writer doing this OP under the Title; FredT


oh, maybe i'm being too much a CT freak...
...and the FredT post, is the result of a mishap or concussion of the head like the QB Trent Edwards just suffered...

but to my reasoned mind, the real "FredT" would not make all those convoluted spelling & grammatical errors.

call me CT



posted on Oct, 14 2008 @ 08:32 PM
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At this moment I would say Europe handles the banking crisis pretty well. Slow start, but political leaders did agree on a common approach. Which approach Bush today adopted by announcing part of the US bail out-money would go into buying bank shares.

In this thread Europe's spirit was declared 'bankrupt' because of individual states closed up on their national banking problems. I'm European, it's nice. Can be nice, depending the perspective.

Which problems/questions do you want to be accounted for as a collective, that's the question. It's ups and downs. I'm Dutch and Holland (still) has a democracy in working order. We are, due to some silly Atlantic inclination (UK, US), involved in Afghanistan, we were involved in Iraq. Both wrong, and Holland still has to answer the commitment to acts of revenge, the US going bezerk.

Sorry, off topic.

I would say, in the end we as human kind need to be able to manage our world. This will take time. In the meantime we need states, players, that work to this end. Our world is complex. Lack of good reasoning, guns in abundance. Vote for the world too, US.



posted on Oct, 14 2008 @ 10:34 PM
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reply to post by Roosje
 


Never thought I would know more about European economics then a European. Y'all always seem so .. involved


Most European countries, or rather, as we now refer to as The Western World (North America, parts of the Me, Australia and Europe) all had SEVERE mortgage "problems" ..

Not exactly mortgage defaults.. but rather falling equity. When you buy a house for 50k Euros and sell it 1 year later for 150k Euros.. it a damn good thing for the seller. Now the person who bought it for 150k Euro's and then the value drops to 75k Euros... well by God that is a mess.

Home owners suffer from negative equity.. banks do to .. it lowers the security level of the securities sold to back them.. from positive investments because property values kept rising, to "bad debt" that cost more then what the value of the object being invested in. What investment bank wants to buy a 150k mortgage for a house, if foreclosed, could only get 75k Euros and lower?

Some countries, like Spain, Ireland, the UK, they suffered from very fast rising home prices. Some countries like for instance, Romania, Bulgaria, Czech Republic etc suffered huge development depreciation .. massive apartment and office development in the "booming economy" .. all depreciate and billions where lost ..

Europe's problem is at times considered far worse then America's, only because America is larger as a single nation is it bad as they say, if all European nations where considered a United States I fear you guys are fairing much worse..

We suffered opposite types of inflation .. our decreased, yours increased..

Meaning that while property values fell here, because of lower currencies foreign investments really stabilized us in some respect.. where as few by summer hit could even afford to invest in Europe, your currency was so highly deflated..

I know first hand.. I tried to buy a house in Europe my self, in the middle of no where.. I believe my neighbor would have been a run down sheep farm..

In the states imported goods prices soared, over in Europe the valuable tourist trade took huge hits (none worse then in France) because of Currency exchange rates..

The Western World is in trouble..

So before we squabble over which country is ok, which is not.. perhaps we ought to be discussing what is going on with our Eastern Brothers .. because the Far East has been very... quiet... about the entire situation..



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