Quote of the day

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.

Related articles

• 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)