Why The New European Bailout Will Fail

[No DUplicitous DUpe]

Why The New European Bailout Will Fail
(posted with permission from: http://sane-ramblings.blogspot.com/2011/10/why-new-european-bailout-will-fail.html)

After the dramatic new European bailout announcement, and despite few specifics, stock markets skyrocketed. But they are in for an ugly awakening. Europe will beg China for money, but their financial problems are so great, even China joining Germany can't solve them. Yet there is a far greater problem:

The economies of Portugal, Ireland, Italy, Greece and Spain are in a vicious tailspin and as they sink, their money needs soar. Yet to comply with the loan covenants, far more public sector people will be laid off, wages will be cut, retiree pensions will be slashed and taxes will rise. This will kill any potential economic recovery as it impacts the private sector as well. Already in Athens for example 40% of their youth are unemployed, one in four storefronts are vacant and over 100,000 people have repeatedly protested on the streets, while their strikes have shut down the country, including tourism, a vital part of the Greek economy. There are already calls to get rid of the Socialist government that just agreed to these bailout terms.

European unemployment rolls, home foreclosures and credit card defaults will soar and home values will fall. European governments are trying desperately to convince their citizens the severe economic problems are being solved as they Band-Aid them. Brace yourself for tough times, for their problems will have global impact, and please willingly help others as together we will eventually triumph over the world economic collapse.

For more information, please see "No Bounce for Greek Spirits," The Wall Street Journal http://online.wsj.com/article/SB10001424052970203554104577001773720092842.html

[abelenkpe]

1. Global debt jubilee

Would be more humane

[sabrina 1]

2. That's what most European economists are saying.

Some even calling it a 'fantasy'. They need to get rid of their governments over there, as Iceland did, and it looks like the EU will not survive this from what a lot of people are saying. This has shown people there how if one country has problems it can drag down the others.

However, the Europeans blame all of this on the failure of Lehman Bros and Henry Paulson allowing it to happen. They all should been allowed to fail and we would, like Iceland, be rebounding by now. Instead, they keep putting off the inevitable. They have to start prosecuting the crooks, and if they are going to borrow more money then use it to create jobs. That will stimulate their economies, instead they keep trying to save the banks with zero concerns for their people. They deserve whatever happens to them, but not the people.

Max Keiser said today that they could not be doing anything more stupid, instead of getting out of debt, they are planning on trying to borrow another trillion dollars to create even more debt. He went wild over it, like everyone else, calling it a fantasy. But for a day, it made the market go up. What a scam it all it.