It’s “every country for itself”;
The massive liquidity crisis in the banking system has already nudged the Irish Republic and Greece into unilateral – and probably illegal under EU law – action to guarantee the deposits in national banks. Faced with a choice between the possible collapse of their banking systems and violating EU competition rules, the two countries opted for what they saw as the lesser evil. Now Germany, which at the weekend rejected French plans for an EU lifeboat fund, has taken the decisive protective step, and it is said to be plain that other European states will have to follow suit.
h/t Maz2
“The episode of schadenfreude over America’s “cowboy capitalism” problems was very short-lived, wasn’t it?” Indeed.
This story highlights the sorry state of the finances and banking system of a good many European nations. Hobbled by high taxes, a stifiling regulatory environment and a rigid labour market, European economies will actually be in a much worse position to weather the coming economic storm than more flexible, laissez-faire economies like the U.S.
Watch for the MSM to be absolutely stunned by these developments. In the wonderful socialized economy model of Europe events like these were not supposed to happen.
Dennis, interesting how the media coverage between the USA situation and the incipient European meltdown differs, eh? One rarely hears a peep about the crash and burn of the European housing market. But the crash was a while ago, and the burn is really getting going right now.
Funny, that.
“Hobbled by high taxes, a stifiling regulatory environment and a rigid labour market, European economies will actually be in a much worse position to weather the coming economic storm than more flexible, laissez-faire economies like the U.S.”
Broadly speaking, this is true. But what is the $700 billion TARP plan exactly?
Still the Irish example is pretty cool, soon they’ll have competition in Europe and have the govt pay people to open savings accounts in each country. I bought some stock in Irish banks last week before the guarantee came out. Made about 50%…
What is happening to those countries that have carbon taxes/trading etc. Are there not some countries getting out of the green business.
The MSM is not and will not be spending any significant time reflecting on the irony of European economies following the the US.
For all the usual reasons.
It is my belief that TARP was a capitulation to primary lenders (i.e. China/Saudi) that refused to buy more US debt unless the Treasury promised to hoover up their junk. This is distinct from and has little effect on the interbank lending crisis. Banks are hoarding cash because the credit default swap settlements from the Freddie, Fannie and Lehman crashes are starting this week. Each bank is looking at the other wondering if it will still be standing after the settlements – hence, too risky to lend to even short term. This is an entirely different problem, not disclosed by Bush/Paulson/Bernanke/Congress. The credit default swap tsunami is coming ashore.
[quote]What is happening to those countries that have carbon taxes/trading etc. Are there not some countries getting out of the green business.
[/quote]
MaryT,
The Carbon Market is dependant on DUMB money bet against Smart Money. Without the dumb money the market crashes… The Carbon market has some advantages.
1. Carbon Credits are theft proof… The Vaults are empty because the Cash is converted up front.
2. The worlds supply of “Village Idiots” are busy (engaged) as experts in the Man-Made Global Warming fraud. No Village Idiots = No Market
3. We know that a Sierra Club membership, & a Postage Stamp, qualifies any village idiot as a Scientist (a doctorate in consensus building). Everyone should know that Scientists, even village idiots, don’t invest (Play) in their own crap.
4. 700 billion fairy farts will fit in Gore’s “Roy Rogers” lunch bucket.
All the economic stimulus of lower interest rates and social investments via Fannie and Freddie; a 30 year + effort at deflecting recessions has now finally come home to roost…A depression (Remember it’s a worldwide lack of cash problem)and not just a recession (Slow down in economic growth) might be in the works. A depression now in our spoiled society would spell total disaster and possible anarchy. In 1929, people were much different than today + a lot where still living off the land wereas today most are city dwellers that don’t know squat about survival and sharing. I smell a civil war brewing down south and we up here might have many many uninvited guests soon.
I know, Kate would say I’m a doom and gloomer…I hope she’s right and I’m totally wrong.
Keep your powder dry though, just in case.
The Grapes of Wrath to Madmax?
funny that, was reading an article about a week ago or so how the europeans were laughing at the americans and their sub prime crisis
now we can laugh at the socialist idiots across the pond!!!!