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Why the latest eurozone bail-out is destined to fail within weeks

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posted on Oct, 29 2011 @ 05:50 PM
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UK Telegraph


The eurocrats, of course, lack the guts to trim back monetary union to a more manageable size. Too much face would be lost. So "euroquake" fears, once viewed as outlandish, are gaining pace. Despite Thursday's deal, and all the reassurances of a "durable solution", the Italian government on Friday paid 6.06pc for 10-year money, up from just 5.86pc a month ago and a euro-era high. Such borrowing costs are disastrous, given that Rome must roll-over €300bn of its €1,900bn debt in 2012 alone. A default by Italy, the eurozone's third-biggest economy, and the eighth-largest on earth, would make Lehman look like a picnic.

The eurozone must be consolidated. World leaders should similarly force European banks to disclose their losses, we all take the hit and then we move on. Instead, we are served-up, in ever more complex variants, the same "extend and pretend" non-solutions. It gives me no pleasure to write this, but I give this deal two weeks.


And when this fails, then what? What rabbit will be pulled out of the hat when this grand solution falters? Will there be any admission that they have lost control of the situation? Will be interesting to watch so grab your popcorn.

Btw I only cited the last two paragraphs so refer to the article for the full analysis.



posted on Oct, 29 2011 @ 06:09 PM
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reply to post by surrealist
 


Thanks for the heads up, I was wondering how long this bail out might affect the euros price, sentiment is important when trading forex.
edit on 29-10-2011 by Lagrimas because: (no reason given)

edit on 29-10-2011 by Lagrimas because: (no reason given)



posted on Oct, 29 2011 @ 06:37 PM
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Yes of course it will fail and soon, they may have a few more rabbits to pull out, but with each failure their credibility gets dried up more and more.

Very soon people will have to wake up and realize the hard truth - there is no capital to pay the debts so nothing but defaults are going to stop the defaults.



posted on Oct, 29 2011 @ 06:38 PM
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wow, 2 weeks...
most economists and similar vocations say that the bubble will expand until after the new year


see, the Fed itself is manipulating bonds & treasuries to be losers--and the Equities = Stock market is the only place for the $5 Trillion that Seniors/Funds/Retirement portfilio's can go-> to get an expected 4% return


this, even with the EU bailouts & faux debt-forgivness ploys that were the 'key' to the debt-restructuring PLAN
are all hogwash...

but it sure won't be a mere 2 weeks for the collapse...
but it can very well happen sometime in 2012



posted on Oct, 29 2011 @ 06:53 PM
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And George Soros only gives the deal between one day and three months.


Veteran investor George Soros has attacked the lack of leadership at the top of the eurozone and said that the new Brussels "deal" to solve the debt crisis will only last between "one day and three months".



posted on Oct, 29 2011 @ 07:01 PM
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Red pill and blue pill are war and crash, respectively.



posted on Oct, 29 2011 @ 08:02 PM
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I had a conversation with a friend about this the day of the "deal"...

while all the international markets are patting themselves on the back and celebrating the "salvation" of the Eurozone, the reality is that they've simply adjusted the debt, and are using more debt to pay off the current debt, in an attempt to kick the (very broken, rusty) can a little further down the road.

This WILL fail. It's only a matter of time before the issue resurfaces again, because nothing was solved.
I simply cannot understand why people seem to think that delaying the inevibable (US debt default, Eurozone collapse) is a solution to ANYTHING.



posted on Oct, 30 2011 @ 01:56 AM
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reply to post by Awen24
 


they all know it is the biggest ponzi scheme in the world.
they are shuffling the cards to avoid the whole thing imploding.
(which it has to do)



posted on Oct, 30 2011 @ 03:17 AM
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A though has oftern occured to me, mybe complete crash is what is needed
to "FIX" the system, sounds strange but once things are patched over too mutch
it gets to the point were you need to start again. Like a road that has had
dozens of potholes, it will end up being easyer and in the end better if you rip
it up and start again. but the question would be too what point do you stop
ripping it up. just musing out loud.



posted on Oct, 30 2011 @ 06:52 AM
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Thats about right, tho i see 4-6 weeks before this fiasco will show its teeth.
2 weeks until markets will realize its a fiasco...and about same until Italy or Spain will have their rating dropped again by at least one notch.

What they did is esentially keeping the plug on the patient (EU) machine .

Before this year's end (could be in first month of January 2012 if they bailout another country or trim again some of Greece debt) we will see a new crisis unfolding in all its splendor, sadly.



posted on Oct, 30 2011 @ 08:13 AM
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ahhh...but I bet it served the big gamblers on wall street well.....
oh, we have a solutionn!!! stocks rise....
uh uh,,,, the solution isn't working, stocks crash!!!

by when they announce their plans aren't working, sell when everyone thinks this next plan is the one!!!

not advising this, but I wouldn't be surprised if this wasn't why they haven't found the real solution yet.....
they are making too much money off of the bogus solutions!!!

just hit the reset button, declare a year of jubilee.....what the heck everyone owes more money than they can pay just about, everyone comes out a winner....so, well, why not???



posted on Oct, 31 2011 @ 02:48 AM
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^Coz they'll just borrow again? And again. and again...

two



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