Quote of the day
9.27.2011 Leave a comment
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.
- MEPs demand fiscal union, Eurobonds and a single EU finance minister (blogs.telegraph.co.uk)
- Bank Commercial Paper Maturities Fall as Funding Concern Rises (businessweek.com)
- Game Over? Senior IMF Official – “I Expect A Hard Greek Default This Year” (zerohedge.com)
- Timebomb in Euroland: The Eurozone is Heading for a Crash – by Mike Whitney (jhaines6.wordpress.com)