Stick a Fork in it; the EU is dead

Discussion in 'Economy' started by JimBowie1958, Feb 16, 2012.

  1. JimBowie1958
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    JimBowie1958 Old Fogey

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    This list of banks in Europe being reviewed by Moodies and like to get downgraded to junk is pretty long and has some major players in it.
    Complete List Of Europe's Expanded Bank "Junk" | ZeroHedge


    This shows how exposed Allianz and Generali are to a Greek default. They are described as the AIG to the above list of Lehman's-soon-to-be.
    A&G's AIG Moment Approaching: Moody's Downgrades Generali, Cuts Megainsurer Allianz Outlook To Negative | ZeroHedge


    John Taylor warns of the coming disaster that is now unfolding befoe our eyes.
    "Lehman 2.0" Imminent Warns John Taylor | ZeroHedge

    And Europes recession will drag China into the gutter and the US not too long after that and then everyone else in the world.

    This will be a double bang recession that will truly set a record for economic depressions.
     
  2. zzzz
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    zzzz Just a regular American

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    And add to that the volatile situation in the gulf with Iran and we are facing a very possible prospect for an economic meltdown this fall ... which by the way would doom Obama's Presidency.
     
  3. Baruch Menachem
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    Baruch Menachem '

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    The EU, No. The Euro, maybe.

    As long as there is no run on the banks, they should be ok
     
  4. JimBowie1958
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    JimBowie1958 Old Fogey

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    You really think that the EU can survive the disintegration of the European Monetary Union?

    I cant see how the EMU can survive the destruction of the Euro, and I dont see the Euro getting through this. There will be such a chain-reaction of Generali and Allianz falling due to huge cycle of margin calls causing defaults then recursively causing more margin calls, etc, that will just overwhelm the values of these banks, and they go under draggin Generali and Allianz with them in a storm of dirivitive contract hail, sleet, blizzard and floods.

    With all that bankruptcy going on, and the nations of the EU bailing out the banks as their behavior so far would suggest, how does the Euro survive? How does the EMU survive?

    And the EU without a Euro or an EMU?

    I wish I could share your optimism, I really do.
     
    Last edited: Feb 16, 2012

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