Monday, November 28, 2011

Christmas comes early

What more can one say? They really are stuffed.

TBF has even more and, commenting on the failure of German to sell its quota of euro bonds, The Hill blog observes: "This is all so painful to watch, mostly because it is a true indictment of the final breakup of the eurozone, but when it breaks up what are the implications for Europe, world trade and the good ol' USA? All we know is that the short-term impact of a breakup will not be good".

Longer term, it will be worth the pain, if only to see the "colleagues" meet their nemesis. After decades of their arrogance and triumphalism, is will be so nice to watch them squirm.

And already we see it. The Euribor/OIS spread or "fear gauge" is flashing red warning signals, says Ambrose. Dollar funding costs in Europe have spiked to Lehman-crisis levels, leaving lenders struggling frantically to cover their $2 trillion (£1.3 trillion) funding gap.

What we know for certain, he adds, is that Europe's current policy settings must lead ineluctably to ruin and perhaps to fascism. Nothing can be worse.