Eurozone will collapse...

[Osem]

Cyprus appears to be edging closer to a bailout, with the central bank governor saying that the country will seek European Union aid if necessary.

The comments by Panicos Demetriades, made in an interview with the Financial Times, echo remarks on Friday by president Demetris Christofias.

Cyprus had previously firmly rejected suggestions of a bailout, but its banking system is exposed to Greece.

http://www.bbc.co.uk/news/business-18318252

The bailout snowball appears to be gathering yet more momentum. Still it's relative small change really I suppose.

Panicos

Roffle

---------- Post added at 21:49 ---------- Previous post was at 21:48 ----------

I understand that the interdependencies are such that if Greece goes down, Cyprus is going to go down with it.

[Osem]

Build now pay later...

http://www.bbc.co.uk/news/business-18277681

Sound familiar?

[mertle]

Originally Posted by Osem

Build now pay later...

http://www.bbc.co.uk/news/business-18277681

Sound familiar?

depends what you spend it on if its to improve production then it earns country money later.

Watched vid from economist.

He said whats happened is money raised is been used as bad credit by banks.

We raised loans for consumption, property, hedge funds and speculation. This all bad for the economy. We need to raise it for production purposes to drive jobs creation things which then sold on improve uks GDP.

If the whole europe embarks on this then we will recover for sure.

Our last quantitive easing ended up in markets BOE thinking another stimulas why the first failed. Merve the swerve is useless needs to direct the money in right areas.

He talks alot sense maybe we should ask him to be our chancellor replace osbourne. Suprised how we given 97% control money to private banks without strings.

http://www.youtube.com/watch?v=r7qOu...hannel&list=UL

Another pet hate for me is give private firms government money without strings. Surely we should get something back.

http://www.centro.org.uk/newsroom/Pr...ease27754.aspx

In towns up and down country they getting new buses from government even places getting new bus stations. Yet this free money nothing in return. Surely 1% ownership or shares in return.

Crazy we wonder why business use the government as a cash cow bemoan they cant afford this and that then pocket profits.

Great to see some news investment but they should ask for something back in return. Maybe loan repayment plan etc.

Originally Posted by Osem

Build now pay later...

http://www.bbc.co.uk/news/business-18277681

Sound familiar?

The Club Med Euro-states would not have had access to funds at such low rates of interest had they retained their own currencies, and with good reason - excessive spending on cultural/political vanity projects will destroy Spain as surely as tax-dodging and a bloated public sector has destroyed Greece.

Grexit isn't the calamity that will finally kill the Euro, but Spexit most certainly will. It is *going* to happen. Le Grand Projet is holed beneath the waterline with too many of its watertight compartments compromised. The sooner they deploy the lifeboats the more manageable the consequences will be. Sadly, idiots like Barroso still have their hands clapped over their ears shouting "More Europe! More Europe!" as if it were business as usual.

[mertle]

Cyprus in the deep stuff will this effect uk more.

http://www.telegraph.co.uk/finance/f...s-buckles.html

Russia has effectively shored up Cyprus over the past two years but rising defaults in Greece have proved overwhelming. The Cypriot banking system is nine times the country's GDP, with assets of €157bn (£127bn). It has been called the "Iceland" of the South.

Not good this markets panicking again. Can we use powers to stop them making situation much worse. While these run arround like headless chickens we wont get stability to sort problems. These money men wanted austerity now bemoaning its tanking economy/causing unemployment. With less money for people to consume.

http://www.telegraph.co.uk/finance/d...isis-Live.html

How can we stop markets in other counties trading?

[mertle]

Originally Posted by Hugh

How can we stop markets in other counties trading?

wont be easy thats a fact.

possible needs international co-operation but something needs to be done to stop the panick. Them panicking making bad situation much worse with them piling there money into safer things like comodities its make problem worse than it really needs to be. The uk manufacturing plummet cant help matters.

Suppose one way might be to try get money into peoples hands who spends it with above inflation busting pay rises. If we gave common workers 10% increase then that might just kickstart things. However the likelyhood is no doubt bosses will squeal dump jobs in selfish atitude.

If that the only way to stimulate the economy then surely worth doing explain to bosses why. even if wage increase is 12 month stimulus better nothing.

Another is government to hand out loans to small business/medium business in to stimulate bringing jobs improve manufacturing. Money to help those who got idea who need funds to set there own business if they unemployed. Loans which government earn money repaid back later if they can. Risks but risks worth taking. We get people in work new businesses does not matter how small.

I would say many got ideas but not the capital or collateral to set it up.

If they see people spending money with more disposable cash then maybe they will stop panicking.

I do blame IMF they got lot to answer for how they done things. they could handled the situation much better all they did was cause panick. They tried to ofset the blame from the banks typical. Wish the 2 faced cow got sacked.

How we stabilise the markets is hard issue but that should be priority.

I dont think its possible to able tackling debt management while the market so spooky and economy so weak. Which what experts should told the governments, if they did governments stupid IMF should listened. Nope they went ahead with crazy plan which sunk the world into a mess.

You can't give out pay rises to common workers or anyone else, when the cash isn't there to do it. We are in a recession - businesses are making less money and are borrowing less too. That's why people are losing their jobs. Business is not making the profit with which to pay them. The State can't stuff the pubic sector with pay rises either, because this requires tax rises that the real economy (the private sector) simply cannot bear.

The only place there is a massive hoard of distributable cash is in the Treasury - not in balances as such, but in the tax system. The government has the option of short-term tax cuts in order to put money in the hands of consumers. The flip-side is that this carries inflationary risk, which would be tricky to deal with via the usual means (raising interest rates) because the economy is so fragile, and so many people still have unsustainably large mountains of debt attached to their houses (many of which are no longer worth enough to pay that debt off, if it came to it).

This is, of course, all academic, because an economic tsunami of terrifying proportions is even now rolling its way across the ocean towards us. When the Euro implodes - and it is going to - all bets will be off. I'd start learning how to live with less right now, if I were you.

[Matth]

It seems certain that the Euro will fail, unless those countries which should never have been allowed to join in the first place are ejected from it -which would be a huge lump of pain, but would bring much greater stability to the core eurozone.

The crazy thing is, we had the good sense to stay out of this Mickey mouse money, but it seems we still get stuffed whichever way... we pay to prop the wretched thing up, and we pay if it fails. Time we stopped throwing good money after bad.

[mertle]

According telegraph today we got money problem now.

http://www.telegraph.co.uk/finance/f...contracts.html

There contraction on money now.

Clear signs of trouble are emerging in the US, until now the last bastion of strength. The New York Institute of Supply Management said its ISM business index – a proxy for business demand – flashed a "screeching halt" in May, crashing to 49.9 from 61.2 in April, where anything below 50 denotes contraction. Unemployment is rising again after grim jobs data for April and May, indicating that the economy may have fallen below stall speed.

Originally Posted by mertle

According telegraph today we got money problem now.

http://www.telegraph.co.uk/finance/f...contracts.html

There contraction on money now.

The closer the tsunami gets to shore, the more the waves start to pile up. It's coming, my friend - time to head for the hills.

[mertle]

Originally Posted by Chris

The closer the tsunami gets to shore, the more the waves start to pile up. It's coming, my friend - time to head for the hills.

Is that all the rich stampeding like drove of pigs

Seriously there must be reason why the rich suddenly started hoarding this gone on before 2008 we saw gold creaping up then.

Why it only destroying what many built there businesses.

Originally Posted by mertle

Is that all the rich stampeding like drove of pigs

Seriously there must be reason why the rich suddenly started hoarding this gone on before 2008 we saw gold creaping up then.

Why it only destroying what many built there businesses.

Gold is money - the only true, hard currency. It is rare and precious and no clever financial instrument, fund, transaction or other assorted sleights of hand can make it more or less than what it is.

The rich, though I generalise, are close enough to the financial system with their advisers and investments to realise there's nothing holding it up. Buying gold is a wise course of action if there's a risk of even the major reserve currencies getting into difficulty.

[mertle]

Originally Posted by Chris

Gold is money - the only true, hard currency. It is rare and precious and no clever financial instrument, fund, transaction or other assorted sleights of hand can make it more or less than what it is.

The rich, though I generalise, are close enough to the financial system with their advisers and investments to realise there's nothing holding it up. Buying gold is a wise course of action if there's a risk of even the major reserve currencies getting into difficulty.

Yep agree think this was first warning that was not headed why was gold going up.

I know many want money back linked to gold reserves.

There move was way before 2008 cant remember when gold started to climb in value. Thats not forgetting the steady rise into comodities.

So advisors helped them but did governments advisors tell them too. Economists ket stum too. Warning bells should been sounding way before it hit.

Its like everyone new storm coming except the banks governments and economists unless they ignored the signs.

There blokes video on youtube posted it awhile back about money. He did that video 1981 I think it is he predicted the crash then and the meltdown because fractural reserves been overused by the money men for there own gains.

The bloke warner think name economist got more sense osbourne. The vid just couple days ago says we dont control 97% money. So when government QE or main bank its market which dictates the flow for its interests not necessary whats good for economy. Often flowed into bad debt as earns them money instead using it for productive use. So BOE ends up not helping our GPD.

With now flow dropping alarmingly we need to get cash flowing.

I cant see any other way than this QE but we should take control where it used.

This what economist says use it to build worth and value by using it for productive means which improves GPD. Basiclaly for small medium business and expansion in areas which produces goods for selling.

Worst would be is let it get filtered into markets, hedge funds, even property/land.

He talked alot sense.