Warning of a stock market rout unless a eurozone rescue package is found

[alp227]

Source: The Guardian

EU leaders were under renewed pressure today to agree immediate steps towards a full-scale rescue of ailing eurozone economies or risk a stock market rout when exchanges open on Monday.

Fears that months of debate over how to resolve the Greek debt crisis had brought the world economy to another "Lehman's moment" led several prominent analysts to warn that the situation could spark a run on bank stocks next week.

President Obama and the US treasury secretary, Tim Geithner, welcomed a commitment by the European Central Bank to step up its efforts to boost growth, which could mean a cut in interest rates at its next meeting in October, but pressed France and Germany to move quickly with a rescue package to prevent further turmoil.

George Osborne warned that the leaders of the eurozone had six weeks to end their political wrangling and resolve the continent's crippling debt crisis.

Read more: http://www.guardian.co.uk/business/2011/sep/23/stock-market-rout-eurozone-crisis

[my2sense]

1. Wow - stock market crash AND gov't shutdown

:wow:

[nadinbrzezinski]

4. Chinese curse?????

[msongs]

2. "My Fat Greek Financial Meltdown", opening at a theater near you on Monday nt

[nadinbrzezinski]

3. RLOL

:thumbsup: it's in 3d and IMAX.

[sarcasmo]

5. No one under 18 admitted.

[tama]

6. These schock and awe slogans

are getting quite tiresome. If we let the fucking banks drop dead as they well deserve, then the sky is going to fall on our heads? How much worse you want until you stop making it worse?

[DJ13]

7. As Gordon Ramsey (Hells Kitchen) always says

"Shut it down!"

[DCBob]

8. I think there is consensus building for an orderly Greek default..

that would likley keep this mess from sprialing out of control.

[Imajika]

10. Yup, it's inevitable..

Greece can't pay its bills. It just can't. It needs a managed default. Orderly now or disorderly later, one way or the other it's going to happen.

I wonder though, if it is too orderly and the world doesn't implode, what prevents some of the other countries facing similar difficulties from doing the same? I guess that is what Germany and France are worried about.

Either way, it's going to be ugly.

[ozone_man]

11. No point in dragging it out.

Just get it over with. And then Spain, and Portugal, ...

It's just a matter of time before the euro is done.

[DCBob]

14. Yes there is.. it will help contain the contagion.

[ozone_man]

15. When it's gangrenous

it's best to cut it off.

Time for a haircut as they say. The banks have to take that bitter medicine, for they were the ones who lured these countries into debt. So, the risk (of default) is theirs along with the profits. The same goes for Wall Street banks. We have socialized losses. Time to reinstate Glass-Steagall and add some teeth to regulation of derivatives.

[DCBob]

17. Yes, I think there will be a haircut.. a substantial one.

but they need to do it in a orderly controlled upfront and fair way as possible.. so investors dont get totally spooked.

[plumbob]

18. You're right. If the moral hazard of bailouts for banks isn't obvious by now,

then powers of observation as a human trait is doomed.

WHY should banks who create worldwide chaos be allowed to exist, much less prosper?

[soryang]

9. I guess the usual American suspects sold too many CDS's....

...again. So when European banks fail, then American investment banks fail. Gee, I wonder who has to pay for that? That's why Geithner went scurrying off to Europe with his phony admonishments. It wasn't altruism, that's for sure.

[Odin2005]

12. nm

[n2doc]

13. Banksters need mo' money!

Give it to us or we'll destroy the world. Now!

[bemildred]

16. Bring it. nt