Is There A Table Limit?Submitted by Tyler Durden on 10/06/2011 - 08:40 Black Swan default European Central Bank Fail fixed France Germany Greece Ireland Italy Lehman Portugal Rating Agencies Recession TARP
Europe is in the midst of doubling down again. In May 2010, Europe was going to save Greece to prevent the "problems" from spreading into Ireland and Portugal. In August 2010, Europe decided to save Ireland, Portugal, and provide more to Greece to stop the problem from spreading. In early 2011, Europe starting buying Italian and Spanish bonds in addition to Portuguese, Irish, and Greek bonds to stop the spread of the "problem" into Italy and Spain. In July, they increased the effort to save Italy, Spain, Portugal, Ireland, and Greece so the "problem" wouldn't spread to the banks. Now, in October, they are going to save Dexia and the banks and Italy, Spain, Ireland, and Greece, to save the world. It is not too late for Europe to stop the madness. Let Greece default. Let Portugal and Ireland negotiate real haircuts on their debt. Let some weak banks (even large weak banks) fail. Then provide support. Support the best of the rest. Provide infusions. Create new institutions where necessary. Stocks will be lower, but a floor can be provided. |
