European banks in credit freeze

European banks in credit freeze

These European banks are holding their cash, but if interest rates will rise, surely they will invest it.

I believe the world is getting ready for another round of inflation to save many economies, once this panic storm passes by, because many countries through inflation they get rid of their debts, and this is what America has done, inflation has always saved its economy, and then if we come right down to the real facts, many world economies are based upon BULLSHIT.

So let us keep this bullshit going, and live in harmony with each other, but if we look for the real value of things, we are all broke, no nation can save itself.

Sammy

Global financial crisis to tear EU apart?...
:confused:
European Union Tested By World Economic Crisis
Oct. 7, 2008 - Financial Crisis Is A Test For European Union - And Its Survival

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Wall Street’s woes extend far beyond Main Street and all the way to Law Street - the hulking headquarters of the European Union. But the 27-nation bloc based at Rue de la Loi in Brussels, Belgium, hasn’t taken sweeping joint action to deal with the global financial meltdown. Instead, it’s essentially left member countries to go it alone with a patchwork of measures aimed at keeping banks afloat. Frustrated investors want to know why, and some have begun to question whether the EU - at its core, an economic union - will survive. Although the EU pledged to act as one to calm roiled markets, it hasn’t done much beyond a move Tuesday to boost guarantees on savings accounts.

That’s led member states to take an a la carte approach, with major economic powerhouses like Britain and Germany putting together rescue packages, leaving smaller nations like Iceland to take the fall. It’s a risky business for the EU: In the short term, banks in poorer countries may flounder and fail. And by relinquishing key decisions to its members just as they’re turning to EU headquarters for guidance at a time of crisis, the bloc could see decades of attempts to forge unity simply disintegrate. Already, the 27 EU nations are divided over deploying troops to Afghanistan and deadlocked on a constitution designed to transform their union into a political super-state. Only 15 countries now use the common euro currency and the pride of the bloc _ passport-free travel _ doesn’t apply to the entire EU.

Failure to pull together now on the financial crisis could push member nations even further apart, perhaps emboldening a resurgent Russia’s influence on the fringes of the enlarged EU. “Europe is in the midst of a once-in-a-lifetime crisis," 256 of the continent’s leading economists said Tuesday in an open letter to EU leaders. “Unless European leaders immediately unite to address this crisis before it spirals out of control, they may find themselves fighting over how best to salvage the aftermath," the economists said. They evoked “the dark years of the 1930s," adding: “It is not an exaggeration to say that it could happen again if governments fail to act." And failure to act in unison has been an EU hallmark over the past few years.

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Hyperinflation on the horizon?...
:eek:
We Are Facing an 'Inflation Holocaust': Jim Rogers
10 Oct 2008 | Markets do not trust the governments' plans to keep struggling banks alive and investors will only calm down when the companies with bad assets are allowed to go bankrupt, legendary investor Jim Rogers, CEO of Rogers Holdings, told CNBC on Friday.

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“The way to solve this problem is to let people go bankrupt," Rogers said. “Then you will hit bottom and then you start over. The people who are sound will take over the assets from the people who aren’t sound and we will start over. This is the way the world has worked for a few thousand years." The current rescue plans, which will force governments to issue more debt, print money and flood the markets with liquidity, will flare up inflation after the crisis is over and will create worse problems, Rogers warned.

“We’re setting the stage for when we come out of this of a massive inflation holocaust," he said. And the plans are unlikely to fend off a severe economic downturn, as the crisis starts affecting all walks of life. “We had the worst excesses we had in credit markets in world history. We’re going to have to take some pain," Rogers said.

“Many people bought 4-5 houses with no money down and no job… you think we’ll just say well, that’s too bad, we’ll start over and nobody loses their job? Be realistic." People should not look to the upcoming G7 meeting with the hope that the leaders of the strongest economies will find a solution. “What they (G7 leaders) need to do is go down the bar and leave the rest of us alone," Rogers said.

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