Germany rejects Eastern Europe bailout - International Herald Tribune
Germany rejects Eastern Europe bailout
Today was a momentous day. Merkel knows that whilst the British banking system is at a leverage of 20 and the USA at 10 hers is at a factor of 50. They'll need everything they've got for their own bailouts. Todays announcement of Eastern Europe being denied a bailout will be panicking the PIGS. Sorry, Ireland, if you were hoping for a Euro-club bailout courtesy of the Germans - look away now and see if you can find the number for the IMF sharpish.
Economic collapse in Emerging Markets is the next crisis in my opinion. The world financial market has not even begun to get close to factoring in the impact of a mass sovereign debt default in Emerging Markets. This is going to be like the default on Govt bonds after the Russian Revolution combined with the Asian Crisis, combined with The Latin American Debt crisis all rolled into one giant mess.
No Brady Bonds this time - the West is a bit busy.
War is inconceivable. The collapse of the Euro isn't.
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