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Originally posted by Shenon
reply to post by eagleeye2
With the SNB intervening and buying Euros en masse to devalue their own Currency,the War already started. After this Currency War comes Trade Wars...and the rest is History,literaly.
reply to post by Vitchilo
Thats why i posted this Picture. Greece will default in the next Weeks,if not Days. I´m pretty sure of that...
Markets tumble after ECB's Jurgen Stark resigns
World stock markets tumbled after the shock resignation of Jurgen Stark, a key member of the European Central Bank (ECB), provided an unwelcome backdrop to the crucial G7 meeting in Marseilles.
The FTSE 100 closed down 2.35pc, the Dax in Frankfurt fell 4.04pc, and the CAC in Paris was down 3.6pc following the news that Mr Stark, the top German official at the ECB, was leaving due to "personal reasons".
Sources said his departure reflected a deep rift at the heart of the ECB, with Mr Stark opposed to the bank's policy of buying eurozone bonds to support highly indebted countries like Italy and Spain. Mr Stark was considered to be a hawk at the bank, favouring looser monetary policy including higher interest rates.
The news came amid clear divisions in the G7 ahead of the two-day meeting, which began on Friday.
...Christine Lagarde, the head of the International Monetary Fund, said that policymakers in advanced economies should use all available tools to boost growth as the world economy entered a "dangerous new phase".
Credit-default swaps signaled a more than 90 percent probability Greece will default.
Here Comes The Non-Boring Weekend: G7 Says "Central Banks Ready To Provide Liquidity As Required"
The G-7 is in full panic mode. The organization for the prevention of harm to the Status Quo was expected to release a communique possibly over the weekend, but the speed with which one was dropped for mass circulation is stunning and confirms that its members are in full meltdown as the weekend comes. It is now certain that the G-7 will attempt some major intervention over the next 48 hours to inject a last dose of hope into capital markets, or else the Monday open will be an epic collapse. - Continues[/ex ]
Got ?edit on 9-9-2011 by OBE1 because: (no reason given)
Group of Seven finance ministers agreed on Friday to respond in concert to a slowdown in the global economy but produced no concrete action to calm markets spooked by signs of faltering growth and Europe's debt crisis.
"We met at a time of new challenges to ... growth, fiscal deficits and sovereign debt ... There are now clear signs of a slowdown in global growth. We are committed to a strong and coordinated response to these challenges," a communique said after hours of talks between G7 finance ministers and central bankers.
"We reaffirmed our shared interest in a strong and stable international financial system and our support for market determined exchange rates," it said. "We will consult closely in regard to actions in exchange markets and would cooperate as appropriate."
A German government source said talks dragged on late into the evening because France wanted a joint communiqué but others in the meeting felt there was not enough common ground to merit one.
Ministers and central bankers were under pressure to calm the biggest confidence crisis in financial markets since the 2007-8 global credit crunch...
There is persistent chatter about a Greek default over the weekend, which Greece denied, but the denier refused to be named. If it's not true, then put your damned name on the statement or be considered what you are - liars. Greece failed to place their short-term bill rollover. That's a declaration by the market that even for short-term paper the market has utterly lost confidence in Greece and the Euro.
Germany's DAX market relative to the United States just hit a five year low today.
To add to the "liar liar pants on fire" calls Germany is now reported to be working a plan to recapitalize their banks if Greece defaults. This in turn means three things:
* A Greek default is considered credible by Germany and they are taking official actions related to that possibility. So much for the denials.
* German banks (and presumably French banks and all the other big banks too) are insolvent as they are carrying these bonds at well above their actual value in the marketplace. If the bonds were carried at the claimed "loss" values, which is quoted as 50%, then there would be no need to recapitalize them would there? This is an official statement of proof that the banks are lying about asset values and are in fact insolvent.
* Remember that we were just told days ago that these banks were fine and needed no capital and in fact calls for more capital by the IMF were officially refused. The same claim has been made about our banks. You were just told officially by Germany that their claim of adequate capital just days ago was a lie as they are now planning to recapitalize the banks. Do you believe our banks are not similarly exposed and also insolvent? YOU'RE BETTING YOUR FUTURE ON THE BELIEF THAT THEY ARE, SO THIS QUESTION IS QUITE GERMANE AND TIMELY: ARE YOU SURE YOU'RE NOT BEING LIED TO EXACTLY AS WE WERE ABOUT GERMAN BANKS?
Coincident with this hitting the wires there was a massive flow of money into the Japanese Yen - and out of the Euro. A monstrous safety trade - people fleeing the European common currency for what they perceive as a "safe haven." At the same time our markets are down 300 DOW points, the S&P is down 2.5% on the day and more than forty points off the early-morning top -- and there's no sign that things are stabilizing at all.
I said the Euro was going to par, and that might be too conservative. With that our stock market will get cut in half -- or more -- from here and once again the banks, insurance companies and everyone else will start crying poor mouth.
The problem is that this time there's no money to bail them out with in the US and as a result if this outcome manifests they will fail. The embedded losses in those institutions on mortgages alone total trillions, which is several times the available debt ceiling and so far beyond the FDIC's reserves that there is no way to cover you, the average person.
Alas, for France, which is very sensitive to any inkling it may have a less than sterling rating (due to its sovereign AAA requirement without which the EFSF/ESM falls apart), the luck may have run out. Bloomberg reports that the abovementioned banks "may have their credit ratings cut by Moody’s Investors Service as soon as next week because of their Greek holdings, two people with knowledge of the matter said.
World Entering 'Dangerous New Phase': Lagarde
Published: Friday, 9 Sep 2011
Christine Lagarde, the managing director of the International Monetary Fund, warned that the global economy is entering a "dangerous new phase" on Friday, ahead of the G7 summit in Marseilles, France.
She warned that both advanced and emerging economies faced key economic challenges, and that governments must "act now" to stop further contagion.
"Policymakers should stand ready, as needed, to take more action to support the recovery, including through unconventional measures," Lagarde said. - Full Text