EU vows to defend euro against market "wolves"

[Lars77]

Source: Reuters

European Union finance ministers promised to do everything to defend the euro from the "wolfpack" of the financial markets as they began talks on Sunday on emergency measures to stop Greece's debt crisis spreading.

The European Commission will present the ministers with a proposal on a stabilization mechanism intended to provide a multi-billion euro safety net for other euro zone countries with bloated public finances such as Portugal, Spain or Ireland.

Bond yields of these countries have been rising sharply -- increasing the risk premium investors carry to hold their debt -- on market concern they may be next to need assistance.

The threat that markets would turn against the three states next triggered a call from euro zone leaders on Friday to come up with a solution to the crisis before markets open on Monday.

Read more: http://www.reuters.com/article/idUSTRE6481A220100509

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Interesting choice of words from the liberalistic free-market Swedish trade minister. All of a sudden that free trade business doesen't look so good?

[AllentownJake]

1. Good luck with that Europeans

Really good luck with that, you are a sitting duck, with 50 guns pointed at you. Best bet is to default.

[inna]

2. "Best bet is to default." - Best bet for whom??

Do you care to explain what you meant by that comment -

Good luck with that Europeans

Really good luck with that, you are a sitting duck, with 50 guns pointed at you. Best bet is to default.

- it really doesn't make much sense.

[AllentownJake]

4. Moral Hazard

THIS BAILOUT HAS NOTHING TO DO WITH THE PEOPLE OF GREECE, SPAIN, PORTUGAL, or IRELAND.

It is about the banks that are sitting on worthless debt. They were sitting on huge piles of it before.

The EU printing 500 billion and making said banks whole still leaves the countries in debt and the banks playing their games while devaluing the currency that everyday people use.

From the beginning the EURO was destined to fail, it is failing. The quicker it fails and the people go back to their native currencies and the countries in the EURO zone can regulate their own banking interest the better it is for everyone...same as in the US.

BTW JPMorgan, Goldman Sachs, Wells Fargo, and Bank of America are sitting on tons of this waste, so I'm guessing Turbo Timmy and Helicopter Ben are very busy this weekend.

[hack89]

5. Can you run a country without credit?

because that is what will happen if they default.

[AllentownJake]

6. The game is fucking over

This is what I have to laugh about, the credit levels are not maintainable for the consumers, businesses, or governments.

The reset button is going to be hit...one way or another.

Countries have been defaulting on their debts for years.

I think Greece has at least 3 in the 20th century...last time I checked there is still the appearance of a Greek government, however this bailout appears to be taking away that appearance

[inna]

3. K&R, and thank you for posting this, Lars - it's always great to hear perspectives from other countr

ies.

:kick: