Eurozone will collapse...

[Taf]

Proposals designed to stop taxpayers' money being used to bail out failed banks will be unveiled by the European Commission later.

They aim to ensure losses are borne by bank shareholders and creditors and minimise costs for taxpayers.

http://www.bbc.co.uk/news/business-18333240

Sounds like the Perfect Storm scenario.... shareholders and creditors will then sell off all stock and withdraw all cash from banks they fear will fail.

Are the Eurocrats who came up with this idea on the same planet as the rest of us?

[Dai]

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.

Indeed it is, which is why the Rothschild banking family have been buying it up. They are also involved in deciding the world price for gold. Nice work if you can get it..

[mertle]

Originally Posted by Taf

http://www.bbc.co.uk/news/business-18333240

Sounds like the Perfect Storm scenario.... shareholders and creditors will then sell off all stock and withdraw all cash from banks they fear will fail.

Are the Eurocrats who came up with this idea on the same planet as the rest of us?

that wont go down well can you remember the names in lloyds moaning they will go broke if they cough up to bail the bank.

I bet they all ready starting to bail before the move.

Lets hope if its possible they backdate it so they can still liable.

The names in Lloyds of London are about specialist insurance funding - are you sure you meant to link them to the bank bail-out, when in fact the banks were bailed out by the government/taxpayer?

[mertle]

Originally Posted by Hugh

The names in Lloyds of London are about specialist insurance funding - are you sure you meant to link them to the bank bail-out, when in fact the banks were bailed out by the government/taxpayer?

sorry for not replying hugh been very ill.

Yep got mixed up on it yeas it was insurance now that you mention it.

So basically you could get the same situtation moaning it will break them.

[nomadking]

The big difference is that those who have invested via banks can only at most lose the money they pay in. Those that invest in Lloyds of London Insurance can lose everything, as there is unlimited liability(ie blank cheque).

[Sirius]

Has it not collapsed yet

Maybe it needs a push

On a slightly more positive note, it seems that customers of Santander UK will be protected should Santander (Spain) go belly up. Scant consolation for anyone else in the Eurozone who might lose their shirts, however at least Britain has a better chance of surviving the almost inevitable crash. We, thankfully, didn't adopt the Euro although via the IMF are still being milked for the financial shoring up of this disastrous idea.

[Osem]

Santander UK has its own UK banking licence so the usual depositer protection rules apply. However since it owns a number of institutions (as do many of the other large banking groups) the maximum level of protection (currently £85k per person or £170k for couples) is split between any deposits with any of those other institutions. This may not pose a problem for many people but for those with greater savings (sitting on the proceeds of a house sale for example) it would do if the bank were to collapse.

http://www.moneysavingexpert.com/savings/safe-savings


Having said that, the repercussions for all of us (savers or not) of a bank like Santander going belly up would be severe.

You're absolutely correct Osem. Still a rather unsettling future.

Germany just don't seem to want to do anything. Probably printing Deutsche Marks as we speak.

[Taf]

As long as it's not Reichmarks.....

Originally Posted by Damien

Germany just don't seem to want to do anything. Probably printing Deutsche Marks as we speak.

Germany is forbidden by its constitution - a constitution, incidentally, dictated to it by our good selves and the rest of the Allied powers in 1945 - from guaranteeing the debts of third parties in the way some have been pressing in recent days.

To be honest, my sympathies are with Frau Merkel here. Her job as Chancellor is to look after the interests of the people who elected her. I don't see how those interests could possibly be served by Germany becoming guarantor of the shoddy financial practices of certain other Eurozone states. She is quite right when she says that mutualised government borrowing via Eurobonds is something that can only follow after the Eurozone states enter a full and formal fiscal union whereby the whole can intervene to prevent profligate behaviour on the part of one or more of the others.

The quandary is, without Germany agreeing to pay for the Euro-bandwagon - and quickly - the wheels are going to come off, most likely in spectacular fashion, before the year is out.

[mertle]

spain downgraded uk warned to get growth by fitch parasites these stupid rating agencies.

http://www.guardian.co.uk/world/2012...owngrade-fitch

Thick 2 short planks as they had not clue like IMF they done more harm than the crooked banks.

read this on reply could not argue against it removed the swearing mods.

freedom was always going to create greed and corruption.

There been some very decent comments such why agencies only acted after issues not before considering people use them for speculation advice.

Fitch said it believed the recapitalisation of the struggling financial sector would be €60bn (£49bn) – double its previous estimate.

I love the way they automatically assume that "recapitalisation" of the reckless financial sector gamblers is necessary. The fools that got themselves into these over-leveraged positions should be left to drown in their self-created oceans of debt, yet the credit rating agencies, the IMF, the ECB, the European Commission, the majority of western political parties are all unanimous in their determination to make sure ordinary working people pay for the incompetence of their rich mates.
The worst thing about these neoliberal $%$% is that they demanded that "the state" stop interfering with the market with their burdensome regulations, then when the whole "free-markets can self-regulate" experiment came crashing down they suddenly and seamlessly change tune and demand that the "evil state" intervene to prevent a massive financial sector collapse.
The financial sector elite demanded deregulation to allow the development of a "Darwinian" dog-eat-dog market, now they should be made to suffer the consequences, "the state" and "the taxpayer" should wash their hands .

[Osem]

Spain's credit rating downgraded by Fitch as international bailout looms.

Europe's fourth largest economy now hovering just above junk ...

http://www.guardian.co.uk/world/2012...?newsfeed=true

Another house of cards economy being exposed for all to see...