Lets see what the Europeans do...

[JagFarlane]

Now that we have Americas response to the economic issues...lets see what the European Union decides to do...

Update on the EU

 

[JAMESBJOHNSON]

My bet is Saudi Arabia offers to help them and Europe becomes Eurabia.

 

[The_Trouvere]

I want the United States to lose ground economically to the European Union. If the Europeans have a higher standard of living than Americans it will be more difficult to justify American exceptionalism and the American free enterprise system.

 

[JAMESBJOHNSON]

The Eurabians are losing there asses today. Crisis reigns today!

 

[DesertPirate]

They are collapsing.

 

[Safe_Bet]

I want the United States to lose ground economically to the European Union. If the Europeans have a higher standard of living than Americans it will be more difficult to justify American exceptionalism and the American free enterprise system.

Your JBJ's evil doppelganger aren't you!

 

[JagFarlane]

Summed up reports

The Italian President is proposing a bailout similar to the American bailout plan.

In Russia trading was suspended when their market, the RTS, fell more than 15%.

Really this is a global crisis, not just an American crisis, and needs to be dealt with swiftly, not just by the US but by the world as well.

Currently, the European Union includes 27 countries having approx 491 million citizens vs Americas 303 million. There are also 3 more countries with an additional 79 million citizens awaiting membership into the EU.

The EU information can be found at europa.eu

 

[JAMESBJOHNSON]

Kiss The Good Life Good-bye

JAG

This is the BIG ONE.

This is the one everyone said couldnt happen ever again...because we're so much smarter and more sophisticated than Gramps & Granny were. But we're as silly and greedy and foolish as we've ever been.

 

[neonlyte]

It's bad. (In Europe)

Iceland is effectively bankrupt - $130bn liabilities v's $20bn GDP, they are dumping acquired overseas assets to bailout the nation. Some suggestion of emergency EU membership combined with scrapping the krona, which has declined 70% in 12 months, 20% this last weekend.

UK is considering taking large shareholdings in ALL UK banks, maybe more news tomorrow morning with a suggestion the shareholdings be packaged in a form of 'citizen bond' vested in the lower percentile of income - a kind of savings bond - to give people on the lower rungs of society a 'leg-up'. Most stupid fucking idea I've ever heard of!

Germany may or may not of guaranteed all banks savings accounts. Whether they did or not, Denmark and Sweden immediately guaranteed the savings accounts in their banks - so we now have a two tier system where is your money is in Ireland, bits of Scotland, Denmark, Sweden, and possibly Germany, your saving are guaranteed.

In Portugal, all loan applications are currently suspended. Our bank informed us this morning that they will not enter into any new agreements until the situation stabilizes.

Meanwhile - I attended two family dinners/celebrations at the weekend that cost a conservative $250 per head, last nights 'extravaganza' was for 50 people... I feel slightly soiled with definite indigestion.

Prediction - Dow will bottom-out at 8750, FTSE 100 at 3900, I took a 'buy-in' at those values last night It was that kind of party

 

[JAMESBJOHNSON]

My prediction is 7500-8000 for the DOW, 12%-15% unemployment, bye-bye 401K

 

[neonlyte]

Iceland has now guaranteed all bank deposit accounts, at 15% interest, it's one way to drag in much needed cash.

 

[neonlyte]

Iceland has now guaranteed all bank deposit accounts, at 15% interest, it's one way to drag in much needed cash.

Germany, having said earlier today it was not guaranteeing bank accounts, now says it is guaranteeing 'private' bank accounts - confusing to say the least. The reason this matters is that it adds massively to a countries debt exposure, in the case of Germany $650bn, and the UK if it were to follow $950bn.

All EU leaders have today signed a 'statement' confirming they will do everything possible to protect savings

The Statement: "All the leaders of the European Union make clear that each of them will take whatever measures are necessary to maintain the stability of the financial system - whether through liquidity support through central banks, action to deal with individual banks or enhanced depositor protection schemes.

"While no depositors in our countries' banks have lost any money, we will continue to take the necessary measures to protect both the system and individual depositors. In taking these measures, European leaders acknowledge the need for close coordination and cooperation."

They are beginning to unravel - with Sarkozy at the helm

 

[rgraham666]

Here we go again.

 

[oggbashan]

Interview on the BBC news with an Icelandic citizen:

"About 30 Icelanders have made our country bankrupt."

The country's debt is about 5 times their annual GDP and the creditors have called in the loans.

Og

 

[voluptuary_manque]

And just last week Der Spiegel was chortling about the "end of American dominence". Hah! Where is it written that Europeans are any smarter or less greedy than Americans? "Ashes, ashes, they all fall down!"

 

[rgraham666]

Well, American dominance is coming to an end.

The greatest source of its power, its manufacturing capability, has been moved to other countries.

Its financial strength has been built on debt that can't be paid off.

The last few years have used up its moral capital.

It does have enough nuclear weapons to reduce the surface of the Earth to radioactive glass, but that's not quite the same thing as dominance.

Like all great nations the U.S. got complacent. And after hubris, nemesis always follows.

 

[Liar]

And just last week Der Spiegel was chortling about the "end of American dominence". Hah! Where is it written that Europeans are any smarter or less greedy than Americans? "Ashes, ashes, they all fall down!"

We're not. We just have slightly less to lose.

And a more diverse market, so it'll collapse slower.

 

[JagFarlane]

Well, American dominance is coming to an end.

The greatest source of its power, its manufacturing capability, has been moved to other countries.

Its financial strength has been built on debt that can't be paid off.

The last few years have used up its moral capital.

It does have enough nuclear weapons to reduce the surface of the Earth to radioactive glass, but that's not quite the same thing as dominance.

Like all great nations the U.S. got complacent. And after hubris, nemesis always follows.

Actually Rob...America is just really having growing pains as it changes phases.

Initially, America was a farming country, come the early 1900's it began to phase into a manufacturing economy, and now, since the late '90's its been phasing into what is known as a "service" country. The concept is that things aren't necessarily manufactured here, however a lot of buisness is done here, and services are more or less provided.

 

[voluptuary_manque]

Not according to today's news. The inability of the EU to come up with a unified regulatory policy to match its unified currency sets the stage for disaster and the possible retreat from the Euro. Not good!

 

[rgraham666]

Actually Rob...America is just really having growing pains as it changes phases.

Initially, America was a farming country, come the early 1900's it began to phase into a manufacturing economy, and now, since the late '90's its been phasing into what is known as a "service" country. The concept is that things aren't necessarily manufactured here, however a lot of buisness is done here, and services are more or less provided.

Bur services don't create wealth. They leech off of wealth.

There's a reason why China is on the way up. And the U.S. on the way down.

 

[amicus]

It is pathetic to read those who always express hatred for America predict, with glee, its downfall and its 'commuppance' (sp), from others when no such thing is in evidence.

Let me remind you that the market is the...market....it goes uppity up, up and it goes downity, down, down, this be called a 'Bear ' market and as much money will be made on the downside as the up.

The lesson to be learned, if it will be learned, is that when government interferes in the market place....it causes change.

The market will adapt to that change, regardless of what direction that change takes and some will make money and others will lose...but the market and the economy, will remain.

If you listen and read carefully and not even between the lines, you will hear testimony after testimony how government policy dictated that loans be made to those who were less than good prospects for repayment. It was done as a social gesture to extend home ownership to millions of individuals who had not acquired the capital reserve to make such an investment and did not have the means to maintain a mortgage.

The extension of the bad debt into other institutions on a global basis was to be expected and was predicted quite some time ago and those who knew, moved their investments elsewhere.

"When America sneezes, the rest of the world catches a cold....." is an old addage that once again bears fruit. The US was, is and will be central to a healthy world economy and will continue to be if the market it permitted to function freely.

An Obama regime could indeed bring on a world depression. Cast your vote wisely.

Amicus...