:shock:
This is a pretty drastic step, even if it's just for 15 days.
Considering the markets went tumbling in part on a false article in a British Sunday tabloid, the yes it is a drastic but needed step. Either the markets are in total irrational fear mode and need a time out or there is someone who is manipulating the markets and earning billions.
The investigations into possible market manipulation is on going in several countries as far as I understand it.. and the Italians have raided the ratings agencies in said investigation. I also hope that Soc Gen and Unicredit sue the crap out of the Mail group for losses and liable.
To me it indicates that Europe is very close to a full-scale financial meltdown (or at least its regulators think so).
Based on what? What some so called experts (who all have tons of money in the market) say on TV? I know the Royal Bank of Scotland "experts" are especially popular on CNBC... you know the part nationalised bank Royal Bank of Scotland...
I dont deny that it aint rosey over here, but out right financial meltdown? If you had not noticed, the financial situation on your side of the pond is much more dire than it ever was over here
At least here we have a functioning political system that are willing to make hard calls that go against their political ideologies. And if you had not noticed, the lack of discussion about the US financial problems vs the European problems.. it is Europe all the time on the financial networks, and then some feel good stories about how great the US companies are doing... but rarely a peep about the mess the US is in. Just saying... people are in denial over on the other side of the pond, if they seriously think that the biggest elephant in the crystal room is the so so called European debt crisis. We might have high government debt loads, but we have always had that... but the US has high debt loads at almost every level of government and worst of all.. personal debt is huge as well. The dirty secret about Europe is that people in Italy dont like personal debt and credit cards.. same goes for Spain, Germany, France... especially when compared to the UK and US.
All I am saying is there is need for some level headed perspective in this hissy fitting market...
The prospect of that would be truly terrifying. If that happens it will be much worse than 2008...we could hold our nose and bail out failing banks, but no one has the money to bail out Spain and Italy.
Why would Spain need a bail-out? How would a bail-out help Spain with their "massive" 62% of GDP debt load? And as for Italy, considering 65% of Italy's debt is owed to... themselves... then how exactly will a bail-out of Italy work? I aint denying that debt loads are not a problem, but come on... it is not the end of the world.
If anything this made up crisis is pushing Italy and Spain finally to deal with their structural problems which can only be a good thing. In Spain I for one am seeing visible changes around here with more shops opening than there are closing.. far more. Will it last? Who knows, but there are changes happening. I especially like that the government finally are hitting down on benefit frauds that have plagued the Spanish unemployment system. An analysis of people on the dole show at least 5% out right are cheating the state, and a whopping 25% are in the danger zone of losing benefits because they are not following the mandatory re-schooling, job searching and so on.
But yes, I would love for Europe to put into place a Fannie Mae system so our banks could dump our bad loans on the government instead of having to actually have consequences for their lending policies. Great to see Bank of American back to be nearly solvent again.... sucks that the US tax payer and debt load just increased by 75 billion extra thanks to Bank of America. Wonder what the Bank of America CEO will get in bonus for that nice trick he preformed...
