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That's the problem all along.
Nobody is too big to fail. If there is such a consensus, then maybe instead, we need to never let them get that big.
lol USBANKS dont give a , too big to fail, they will continue what they were doing in risky investments knowing the govt and taxpayers will continue to bail their asses...
fck this...
lol euro bonds % fail, not even worth buying when ur local bank are giving better deposit rates...
lol italy
That's the problem all along.
Nobody is too big to fail. If there is such a consensus, then maybe instead, we need to never let them get that big.
Banks Build Contingency for Breakup of the Euro
PARIS — For the growing chorus of observers who fear that a breakup of the euro zone might be at hand, Chancellor Angela Merkel of Germany has a pointed rebuke: It’s never going to happen.
But some banks are no longer so sure, especially as the sovereign debt crisis threatened to ensnare Germany itself this week, when investors began to question the nation’s stature as Europe’s main pillar of stability.
While European leaders still say there is no need to draw up a Plan B, some of the world’s biggest banks, and their supervisors, are doing just that.
“We cannot be, and are not, complacent on this front,” Andrew Bailey, a regulator at Britain’s Financial Services Authority, said this week. “We must not ignore the prospect of a disorderly departure of some countries from the euro zone,” he said.
Banks including Merrill Lynch, Barclays Capital and Nomura issued a cascade of reports this week examining the likelihood of a breakup of the euro zone. “The euro zone financial crisis has entered a far more dangerous phase,” analysts at Nomura wrote on Friday. Unless the European Central Bank steps in to help where politicians have failed, “a euro breakup now appears probable rather than possible,” the bank said.
Major British financial ins utions, like the Royal Bank of Scotland, are drawing up contingency plans in case the unthinkable veers toward reality, bank supervisors said Thursday. United States regulators have been pushing American banks like Citigroup and others to reduce their exposure to the euro zone. In Asia, authorities in Hong Kong have stepped up their monitoring of the international exposure of foreign and local banks in light of the European crisis.
But banks in big euro zone countries that have only recently been infected by the crisis do not seem to be nearly as flustered.
Banks in France and Italy in particular are not creating backup plans, bankers say, for the simple reason that they have concluded it is impossible for the euro to break up. Although banks like BNP Paribas, Société Générale, UniCredit and others recently dumped tens of billions of euros worth of European sovereign debt, the thinking is that there is little reason to do more.
http://www.nytimes.com/2011/11/26/bu...0+o+prwKIM60HA
Last edited by boutons_deux; 11-26-2011 at 10:24 AM.
http://andrewsullivan.thedailybeast....-the-euro.htmlWolfgang Münchau thinks it may already be too late for Germany to rescue the pinnacle (the euro) of its entire post-Hitler project, (the European Union). It's not hard to see why Merkel has resisted essentially paying for the profligacy of her largely Southern neighbors:The ZDF television poll released Friday found that 79 percent of respondents opposed eurobonds and only 15 percent backed them. It said 63 percent thought Merkel was doing a good job in the crisis and 29 percent disagreed. That figure has improved steadily since early October -- when 45 percent thought she was doing a good job and 46 percent disagreed.If Merkel is gaining by refusing to budge, then the odds of a successful, swift resolution - essentially a quantum leap in European financial governance - are small. Which means we may actually have passed the moment when this unraveling could have been raveled.
Of course he's gaining in polls. Nationalism is going to win out. Isn't he basically telling everyone else to gfy?
Angela Merkel? Yes.
D'oh. I should pay closer attention to leaders genders.
Angelia to you Luck_The_Fakers_Luck_The_Fakers_Luck_The_Fakers_Lu ck_The_Fakers_Luck_The_Fakers_Luck_The_Fakers_s.
http://www.washingtonpost.com/busine...y.html?hpid=z1In reports issued Monday, Moody’s Investors Service said all of Europe’s sovereign ratings are being threatened by the “rapid escalation” of the crisis, and the Organization for Economic Cooperation and Development warned that the region faces the prospect of further massive economic disruption and said policymakers should be “prepared to face the worst.”
Slightly off topic:
http://www.bis.org/publ/otc_hy1111.pdf
Don't you recall the infamous Bush/Merkel attempted backrub?
Eff that! I just bought BofA stock again.
If you are speculating without being forced to by an IRA then you deserve whats coming to you. I took all my assets out earlier this year when the bailouts finally inflated the market to precrash levels and have not looked back.
They are playing the same game and there isnt going to be a bailout this time.
What exactly is it you think is going to happen to BofA? And if it did why do you think there wouldn't be another bailout?
Most American holders are leveraged pretty extensively in the bond markets and because as its currently written Dodd-Frank precludes it. Speculation in the American stock market is foolhardy.
Was BoA one of the banks that didn't want the bailout money but pretty much was made to accept it? I saw that on NOVA I believe.
Really man, if you do not have these questions answered already then why are you investing or are you just following Buffet around?
Aren't you against government regulation?
1. I never lead with any conversation that I was investing at the time. Yeah I am a value investor. Closer to B. Graham than Buffet, FWIW. But it is true--man. BoA didn't want the bail out money, like other banks, man.
BoA needed the money and is probably still lying about its true financial condition.
Billions in cash for trash loans and arbitrage on other money loaned to BofA essentially for free by the Fed, helped a good deal, wouldn't you say?
Any thoughts on how accurate this article is? Keep in mind that I don't really understand this stuff, I'm attempting to wade into the pool at this point:
http://moneyland.time.com/2011/11/29...int/?hpt=hp_t2
Investors face two growing risks – a crackup of the Eurozone and a double-dip recession. To track the gathering storm, keep your eye on global bond yields.
Ah gad.
The danger must be getting close -- it's being openly discussed...
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