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Europe Is Crumbling! by MandingoII(m): 9:21pm On Nov 27, 2010 |
[size=18pt] Debt crisis escalates in Europe; fears grow about Spain[/size] LONDON -- The debt crisis in Europe escalated sharply Friday as investors dumped Spanish and Portuguese bonds in panicked selling, substantially heightening the prospect that one or both countries may need to join troubled Ireland and Greece in soliciting international bailouts. The draining confidence in Western Europe's weakest economies threatened to upend bond markets, destabilize the euro and drag out the global economic recovery if it is not quickly contained. It also underscored the mounting problems facing countries that during the past decade have both over-borrowed and overspent, and are now in danger of losing investor faith in their ability to make good on their massive piles of debt. The perceived risk of debt defaults in Portugal and Spain drove their borrowing costs to near-record highs Friday, with the interest rate demanded on Portuguese bonds at a point where it could effectively cut the Lisbon government off from raising fresh cash to run the country. As a result, Portugal was coming under pressure to immediately request a bailout from the European Union and International Monetary Fund. Officials in Lisbon responded by pushing through a painful round of budget cuts meant to reassure investors and rejected claims that they needed an emergency lifeline. Italian and Belgian borrowing costs also rose Friday. The bigger fears, however, surrounded eroding confidence in Spain, whose faltering economy is more than twice the size of the Greek, Irish and Portuguese economies combined - meaning that a bailout there could run into the hundreds of billions of dollars. Coupled with the pending bailout for Ireland and possibly Portugal, analysts said, a Spanish rescue could severely deplete the $1 trillion stability fund set up by the E.U. and IMF this year to contain the crisis. That could complicate the E.U.'s ability to mount a defense if another member nation were to need assistance. At the same time, it remained unclear whether the stronger members of the 16 euro countries - particularly Germany, the region's economic powerhouse - are willing to dig deeper into their pockets to help shore up their troubled neighbors. German officials were sending mixed signals. Axel Weber, president of Germany's central bank, suggested Thursday that the stability fund could be beefed up if needed. But on Friday, other German officials balked at the notion. Investors have also been rattled by a German proposal to have bond holders around the world - who have thus far effectively been guaranteed against losses - absorb some of the financial pain for future bailouts. "There is neither a reason to consider [more funds] now, nor have there been any efforts by the European Union or by other parties to discuss this issue with the federal government," Steffen Seibert, spokesman for German Chancellor Angela Merkel, told reporters in Berlin. "This is a non-issue at the moment." Depending on the severity of the crisis, the fallout for the United States could be relatively limited. U.S. banks hold about $133 billion in debt from Ireland, Spain, Portugal and Greece, only slightly more than banks in tiny Belgium. By comparison, German banks are liable for $515 billion, and French banks for about $400 billion. A greater danger is that a full-blown debt crisis in Europe could put new pressure on the region's banks, tightening credit and potentially slowing growth in one of the world's largest economic engines. It could also send the euro plunging against the dollar, making the greenback stronger on world markets and undermining the efforts of the Obama administration to boost U.S. exports overseas. "For now, the U.S. is kind of insulated," said Simon White, a partner at the London-based research firm Variant Perception. But whether it stays that way, he said, "depends on how deep the crisis goes." Some analysts said investors might be overreacting to the risk in Spain. Spain's budget deficit is slightly less than those of the United States and Britain relative to the size of its economy. Overall Spanish government debt is below the European average, and Madrid has made surprising progress in cutting spending this year. On Friday, Spain's Prime Minister Jose Luis Rodriguez Zapatero blamed speculators for the deepening crisis there. Predatory investors, he suggested, were placing financial bets against the country's ability to service its debt, causing an unwarranted market panic. However, the Bank of Spain asked lenders to publish more details of their exposure to the nation's hard-hit real estate market in an attempt to calm markets. "I should warn those investors who are short-selling Spain that they are going to be wrong," Zapatero said in an interview on Spanish radio. He added that there was "absolutely" no possibility that the government would request a bailout. Later Friday, bonds from Spain and Portugal recovered slightly, but investors were still demanding significantly higher interest rates than those for debt issued by more stable countries, such as Germany. Yet unlike in Portugal, where fears center on the country's ability to rein in runaway public spending, the crux of concern in Spain is that nation's huge banking sector. Like Ireland, which asked for an emergency bailout last Sunday, Spain is suffering from a real estate bust - and uncertainty about just how much that has damaged its banks' balance sheets. Any full-blown financial crisis would require massive new funds from the cash-strapped government to shore up the banks. Though the financial system in Spain is still considered relatively sound, the shocking swiftness of the deterioration in Dublin's situation - with snowballing bad loans and a run on the banks in recent weeks - has spooked investors about a replay in Madrid. "What caught investors by surprise in Ireland was the speed with which pressures built up in the Irish banking sector," said Julian Callow, chief European economist at Barclay's Capital in London. "That now has forced investors to focus on the common elements" with Spain. |
Re: Europe Is Crumbling! by olaolabiy: 10:03pm On Nov 27, 2010 |
It is a big thing, bro. And, the affected ones can't devalue their currency for export purposes. Euro no dey dem hand. |
Re: Europe Is Crumbling! by MandingoII(m): 10:17pm On Nov 27, 2010 |
Europe's Demise is Africa's rise. All Africa have to do is GOVERN properly. |
Re: Europe Is Crumbling! by olaolabiy: 10:45pm On Nov 27, 2010 |
Nah, bro. Not yet Uhuru for Africa. Don't forget, the Brits, the Swiss are not affected (membership). And, many others. |
Re: Europe Is Crumbling! by MandingoII(m): 9:10pm On Nov 28, 2010 |
you should be happy they are FAILING. they do not have open sewers you do. be jealous and seek their demise. (i would if I were you) |
Re: Europe Is Crumbling! by olaolabiy: 10:00pm On Nov 28, 2010 |
^^^^ |
Re: Europe Is Crumbling! by Nobody: 1:29am On Nov 29, 2010 |
I can assure you , countries like the UK and Germany will still be standing economically when the 'great' USA's financial system collapses ; lol |
Re: Europe Is Crumbling! by tpia5: 7:22pm On Nov 29, 2010 |
MandingoII: is this supposed to make sense i wonder. |
Re: Europe Is Crumbling! by juman(m): 12:06pm On Nov 30, 2010 |
frosbel: Euro still dey kanmpe. Nordic countries are still in good economic position. |
Re: Europe Is Crumbling! by Nobody: 9:11pm On Dec 03, 2010 |
MandingoII: you ARE an open sewer |
Re: Europe Is Crumbling! by isalegan2: 5:39pm On Dec 04, 2010 |
MandingoII: MandingoII: Ditto. But with less jealousy. And more vengeance. |
Re: Europe Is Crumbling! by Katsumoto: 5:23pm On Dec 06, 2010 |
@ OP - please look at the following stats US National debt is approximately $14 trillion Debt per citizen is $45,000 Debt per tax payer is $125,000 Ratio of GDP to National Debt is 94% US Total Debt ( Includes Household, business, state, local government, financial institutions and federal govt) is approximately $55 trillion Debt per citizen is $176,000 Debt per tax payer is $500,000 Total debt per family is $670,000 Total Savings per family is $10,000 An American tax payer should be more concerned about the level of debt in the US than be concerned about Sovereign debt in Europe regardless of what the American ratings agencies are sayings because that debt will be paid. The level of debt in Europe affects mainly Ireland, Greece, Portugal. Both the UK and Spain have debt levels lower than the US even though American speculators are short selling on European defaults. |
Re: Europe Is Crumbling! by MandingoII(m): 11:51pm On Dec 12, 2010 |
^^^^^ [size=16pt]Fugg Amerikkka too!!!! I hope this White Racist Supremacist Country Crumbles TOO!!!![/size] duh |
Re: Europe Is Crumbling! by morpheus24: 7:52pm On Dec 13, 2010 |
@ Mandingo Have you ever heard of business cycles you dumbass. This is just a natural curve in the cycle. There is bound to be an upswing eventually. Its just a matter of time. You akatas really need to stay in school. Damn!!!! |
Re: Europe Is Crumbling! by MandingoII(m): 9:19pm On Dec 13, 2010 |
Have you ever heard of GREEDY A.SS WHITE MEN? I'm sure you have. They are harvesting your resources and Have you ever heard of World War I and WWII what were they fighting over again? dumb. a.zz |
Re: Europe Is Crumbling! by morpheus24: 4:39am On Dec 14, 2010 |
MandingoII: You and I are living in theri world order. Especially you |
Re: Europe Is Crumbling! by MandingoII(m): 5:40pm On Dec 14, 2010 |
So! Unlike you COWARD A.ZZ NIGERIANS. We affect change in this muthafugga. We do not sit on our black butts and DO NOTHING!!! While white greedy mofo's run roughshod over us. Nigerians are some DEFEATIST mofo's. All u black niggers want is a few material gains and you happy. FOR YOURSELVES!!!!!! which is why the larger Nigerian population is a complete failure. If you come up, bring your nigerian brothers with you. |
Re: Europe Is Crumbling! by morpheus24: 9:39pm On Dec 14, 2010 |
MandingoII: We already in your house about to take shit over from your obsolete dumbazz |
Re: Europe Is Crumbling! by MandingoII(m): 10:06pm On Dec 14, 2010 |
You aint gonna do Sh. it but continue being POOR and kissing the White Man's ass. |
Re: Europe Is Crumbling! by morpheus24: 10:48pm On Dec 14, 2010 |
MandingoII: Watch us bro. Just seat back and Watch us. In case you haven't noticed. Brazil, china, india and Africa are the future You better hang on cause the next 10 years gonna be a bumpy ride for your peeps. |
Re: Europe Is Crumbling! by MandingoII(m): 6:34pm On Dec 15, 2010 |
yeah, yeah, yeah. We will be FOSSIL FUEL when the Whites get crushed. I'm all for it |
Re: Europe Is Crumbling! by arabela1: 6:40pm On Dec 20, 2010 |
Re: Europe Is Crumbling! by Rousseau: 12:31am On Dec 31, 2010 |
I would not go as far to say that Europe is crumbling. One country in Europe that has weathered the storm very well is Germany. This country did not suffer much compared to other nations during this economic meltdown. However, there are some countries that are in deep trouble. Iceland, Greece and Ireland were just the beginning. Portugal will be next followed by Spain, in which these two countries will need a bail out as well. The country that should be on everyone's mind is Italy. Italy has the 7th largest economy in the world. If this country needs a bail out, the Eurozone will be in trouble. |
Re: Europe Is Crumbling! by tpia1: 4:06am On Jan 02, 2011 |
@ poster you might just get your wish with all the secession talk making waves. http://www.nytimes.com/2010/12/21/us/politics/21brfs-SECESSIONBAL_BRF.html?src=twrhp The triumphant e-mail arrived in my in-box a week or two ago. It announced a re-enactment of the Florida Secession Convention on Jan. 8, 2011, in the old State Capitol building, where the original event took place 150 years before. |
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