Quote of the day

Eurozone

The Eurozone

Mike Whitney discusses the Eurozone crisis:

Funding fears, political gridlock and plunging stocks have pulled the eurozone deeper into crisis. On Friday, the gauges of market stress continued to widen signalling [sic] more turbulence in the days ahead. Libor — the rate at which London-based banks borrow from each other — increased for the eleventh straight day, while the Libor-OIS spread, (which indicates the reluctance of banks to lend to each other) soared to levels not seen since Lehman Brothers blew up in 2008. And the VIX — better known as the “fear gauge” — has been surging for more than a week.

What does it all mean?

It means the eurozone is in the throes of a vicious credit crunch, but its leaders are frozen in the headlights. That’s a recipe for disaster.

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