Quote:
Originally Posted by DaiNasty
and if what Traduk says is correct, nuclear would be the right word. If a raft of credit default swaps are triggered it could be the start of a doomsday scenario.
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I doubt and very much hope that the nuclear option does not get triggered. I think this media report sums the situation up very well and will save me typing loads.
http://www.guardian.co.uk/business/2...urozone-crisis
A major broker with a reported 6Bn exposure to Euro bonds filed for bankruptcy on Monday. It is (according to various reports) either the 7th or 8th largest bankruptcy in US history. A company with a prior net worth of over $40Bn has gone under in this ongoing mess and although tragic for the thousands of staff globally who have lost their jobs (I know a few of them) it is in reality a snowflake sitting on the tip of the iceberg in this crisis.
What I hope will focus European leaders minds is the old saying of "if you owe the a million, you are in trouble but if you owe the bank a billion they are in trouble".
With Italy also looking very vulnerable they must stop the problem with Greece and in Greece because failure to do so will see the other PIIGS coming under fire and one failure in Europe will be taken as the measure of European lack of resolve. The European now must walk the walk as talking the talk hasn't achieved anything. I think they will.
Previous crises that I have witnessed in the markets, like our ejection from the ERM were handled fairly well but we didn't have to convene a committee to talk about talks ad infinitum.