JimBowie1958
Old Fogey
- Sep 25, 2011
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This list of banks in Europe being reviewed by Moodies and like to get downgraded to junk is pretty long and has some major players in it.
Complete List Of Europe's Expanded Bank "Junk" | ZeroHedge
This shows how exposed Allianz and Generali are to a Greek default. They are described as the AIG to the above list of Lehman's-soon-to-be.
A&G's AIG Moment Approaching: Moody's Downgrades Generali, Cuts Megainsurer Allianz Outlook To Negative | ZeroHedge
John Taylor warns of the coming disaster that is now unfolding befoe our eyes.
"Lehman 2.0" Imminent Warns John Taylor | ZeroHedge
And Europes recession will drag China into the gutter and the US not too long after that and then everyone else in the world.
This will be a double bang recession that will truly set a record for economic depressions.
Complete List Of Europe's Expanded Bank "Junk" | ZeroHedge
This shows how exposed Allianz and Generali are to a Greek default. They are described as the AIG to the above list of Lehman's-soon-to-be.
A&G's AIG Moment Approaching: Moody's Downgrades Generali, Cuts Megainsurer Allianz Outlook To Negative | ZeroHedge
John Taylor warns of the coming disaster that is now unfolding befoe our eyes.
"Lehman 2.0" Imminent Warns John Taylor | ZeroHedge
The world is as blasé about a Greek default or departure from the euro as it can be credit spreads are dropping, the other weak Eurozone sovereigns are financing themselves easily, and everyone thinks the LTRO has solved the problem for the next year or two. Why should we worry about Greece? Who cares if their unemployment is 20.9% and climbing very fast, or that it is now in its fifth year of declining GDP? Lets teach them a lesson!
Hubris is at the heart of this. Everyone says this cannot happen we wont allow it. Says who? The EU says: if it is written in an agreement, it must be totally correct, unchangeable, and followed at all costs. New realities cant intervene and no slippage is allowed. Why the Germans are so sure that they know the future is beyond me. They are fallible too, but they wont admit it, and the Greeks cant make them budge. Havent they looked around? Santorini has a different economic and social cost structure than Wiesbaden. Humanity (and common sense) seems totally lacking in the negotiations with the Greeks and a violent backlash would be totally understandable.
Why the countries that have been fattening up their current account surpluses selling products to Greeks, whom they should have known were basically broke just as they always have been should be paid 100% on the euro is beyond me. Major losses should apply not only to sovereign borrowings but also to accounts receivable for cars, electronics, and other consumer goods. The market has not opened its eyes to the impact this Greek unraveling will have. The Eurozone will be mortally wounded and the world will suffer a significant recession maybe as deep as 2008. European banks will lose much of their capital base and many should be bankrupt, but just as in the Lehman aftermath, the governments will try to save the banks and the banks bondholders, solvent or not. As the bank appetite for Eurozone sovereign paper will be decimated, austerity will probably follow shortly, followed by deflation and uncontrollable money creation. The European recession should be one for the record books.
And Europes recession will drag China into the gutter and the US not too long after that and then everyone else in the world.
This will be a double bang recession that will truly set a record for economic depressions.