The Cyrpus - Euro Crisis -- News Updates March 28, 2013

Chaos In Crisis-Hit Cyprus As Thousands Of Savers Rush To Withdraw Cash From Banks Which Have Opened For First Time In Two Weeks -- Daily Mail

* Armed police and security staff on guard over fears of a run on deposits
* Banks will be open for six hours today from 10am GMT (noon local time)
* Maximum cash withdrawal limit has been set at 300 euros (£250) per day
* Travellers leaving country can only take equivalent of 1,000 euros (£850)
* Curbs will be in place for at least seven calendar days and reviewed daily
* OAP: 'I feel sense of fear and disappointment having to queue like this'
* The stock market will remain closed today 'in order to protect investors'
* Banks shut since March 16 as politicians struggled to secure EU bailout

Ten of thousands of Cypriots scrambled to get hold of what savings they could today after the island's banks opened for the first time in two weeks amid tight restrictions on withdrawals.

There were chaotic scenes outside some banks, with one branch manager in the capital Nicosia forced to placate angry customers clamouring to get in ahead of opening.

Bank staff had turned up for work early as cash was delivered by armoured trucks, while armed police and hundreds of staff from private security firm G4S were placed on standby over fears of a run on deposits.

Read more ....

More News On Cyprus And The EU Debt Crisis

Cyprus crisis: banks reopen after tough capital controls agreed - live -- The Guardian
Cyprus banks reopen: Live Report -- AFP
Cyprus bailout: Live

Cyprus banks reopen with tough cash limits -- CNN
Patient Cypriots line up as banks reopen -- Reuters
An Orderly, if Edgy, Calm as Cypriot Banks Reopen -- New York Times
Patient Cypriots line up as banks reopen -- Reuters
Cyprus banks open after 12-day lockdown -- Al Jazeera
Cyprus banks reopen amid tight security and tough curbs -- BBC
Cyprus banks reopen – but stock exchange will remain closed -- The Guardian
Cyprus to reopen banks, impose capital controls -- Reuters
Cyprus Sets Strict Capital Controls -- Wall Street Journal
Cyprus’s Banks Open After Two Weeks as Controls Curb Panic -- Bloomberg
Cyprus banks re-open; limits on transactions -- Bloomberg Businessweek/AP
Cyprus Banks Reopen With Capital Restrictions -- SKY News
Don't Be Fooled By The Calm In Cyprus -- Sam Ro, Business Insider
Cyprus crisis: Clouds of uncertainty as banks reopen -- Paul Mason, BBC
Factbox: Cyprus imposes capital controls -- Reuters

Commentaries, Opinions, And Editorials On The EU - Cyprus Crisis

One Of The Nastiest And Most Immoral Political Acts In Modern Times -- Max Hastings, The Daily Mail

People who rob old ladies in the street, or hold up security vans, are branded as thieves. Yet when Germany presides over a heist of billions of pounds from private savers’ Cyprus bank accounts, to ‘save the euro’ for the hundredth time, this is claimed as high statesmanship.

It is nothing of the sort. The deal to secure a €10 billion German bailout of the bankrupt Mediterranean island is one of the nastiest and most immoral political acts of modern times.

It has struck fear into the hearts of hundreds of millions of European citizens, because it establishes a dire precedent.

Read more ....

Commentaries, Opinions, And Editorials On The EU - Cyprus Crisis

Why has Moscow gone silent about Russian money in Cyprus? -- Fred Weir, Christian Science Monitor
A bailout for Cyprus, a geopolitical failure for Russia -- Max Fisher, Washington Post
Moscow’s Mysterious Move on Cyprus -- Owen Matthews, Daily Beast
Cyprus bailout: Russia misses chance for natural gas -- Jen Alic, Christian Science Monitor
Cyprus bailout: Europe's love just got even tougher -- Bill Emmott, The Guardian
Cypriot bailout shows troika to be hapless incompetents -- Fintan O'Toole, Irish Times
The Real Meaning of Cyprus -- Jim O'Neil, Barrons
Cyprus rescue marks "game-changer" for Europe's banks -- Reuters
Cyprus Bailout: Everything You Need To Know Before The Opening Bell -- Forbes
Euro zone bonds stabilise but Cyprus tension persists -- Reuters
Cyprus Deal Sparks Anti-German Mood — and Defenders -- Harvey Morris, International Herald Tribune
Cyprus: Europe Rolls the Dice on its Banks -- Karl Whelan, ForbesQ&A-What next after Cyprus bailout? -- Paul Taylor, Reuters
For Cyprus, a Better Bad Deal -- New York Times editorial

The EU - Cyprus Crisis -- News Updates March 26, 2013

Could Spain And Italy Be Next? Fears That Cyprus-Style Raid On Savings Accounts Will Be Used To Bail Out Struggling Economies -- Daily Mail

* Investors jittery that both countries could need another EU rescue deal
* Spain in recession, Italy struggling to form government to clear huge debt
* EU finance chief suggested Cyprus could be blueprint for future bailouts
* Savers on island with more than £85k could lose up to 40% of their money
* ALL banks in Cyprus to stay closed until Thursday to stop run on deposits
* Cyprus will not to need to vote on deal because bank law already in place
* But Germany may have to hold vote before agreement can take effect

British savers in Spain and Italy could be next to suffer a Cyprus-style raid on bank accounts if those struggling economies fail again, it was warned today.

Investors have reacted nervously in the two countries after it emerged the Cypriot rescue deal could be used as a template for other bail-outs.

Both are seen as the most likely contenders for any future bailouts.

Spain is in recession, having suffered badly from souring property loans, and data points to a further deterioration that will hamper Madrid's efforts to rein in public finances and keep government borrowing under control.

Read more ....

More News On The EU - Cyprus Crisis

Cyprus crisis: Bank workers and students protest, as UK strives for Laiki deal - as it happened -- The Guardian
Cyprus bail-out: live. -- The Telegraph

Eurozone Chief: Personal savings accounts in Spain, Italy will be raided to save euro -- The Telegraph
Banks in Cyprus Remain Closed After Bailout -- Voice of America
Bank of Cyprus Uninsured Deposit Holders Face 40% Haircut-Central Banker -- Wall Street Journal
Cyprus businesses feeling strain as Cyprus bank shutdown enters second week -- Washington Post
">Cyprus students hold protest rally as banks stay shut -- Reuters
Cyprus banks remain closed to prevent run on deposits -- The Guardian
Cyprus to bring in weekly cash curbs. -- BBC
Head of Cyprus’s Biggest Bank Resigns -- New York Times

Cyprus Has Crossed The Rubicon In It's Debt Crisis

Cyprus Bailout Crisis Shakes Markets -- The Guardian

Euro and shares slide over fears that Cyprus could trigger bank runs in other eurozone countries

The euro dived and shares suffered sharp losses after a controversial bailout package for Cyprus threatened to trigger fresh turmoil in the eurozone.

Eurozone finance ministers demanded on Sunday that Cypriots pay up to 10% of their bank deposits in exchange for a €10bn (£8.5bn) bailout, prompting panic across the island as people rushed to cash machines to withdraw their savings.

Traders are concerned this could set a dangerous precedent that could trigger bank runs in other eurozone countries.

Read more ....

More News On The Financial Crisis In Cyprus

Cyprus bailout - live -- The Telegraph
Cyprus reworks divisive bank tax, delays vote -- Reuters
Cyprus Postpones Debate on Deposit-Tax Proposal -- Wall Street Journal
Cyprus delays vote on tax raid on savings -- AP
Cyprus Delays Vote on Bailout Plan -- New York Times
Cyprus to Put Forward New Bailout Plan: Reports -- CNBC
Cypriot Outrage Over Tax Could Derail Euro-Area Bailout -- Bloomberg Businessweek
German parties slam Cyprus deal, Schaeuble deflects blame -- Reuters
Stocks fall sharply after Cyprus proposal to tax deposits sparks renewed debt crisis fears -- Washington Post/AP
Cyprus deal shock sends shares tumbling, gold up -- Reuters
EU Fully Supports Cyprus President's Efforts to 'Bring Financial Stability' -- Wall Street Journal
European press review: Cyprus bailout -- BBC
Europe is risking a bank run -- Wolfgang Munchau By Wolfgang Münchau, Financial Times
Euro Zone Moving Into Twilight Zone -- Wall Street Journal
The Botching of the Cyprus Bailout: Worse Than Lehman Brothers -- Eamonn Fingleton, Forbes

My Comment: A Greek friend of mine summed it up perfectly .... voters voted in politicians who promised scores of social programs and ended up financing it with borrowed money and higher debts. And those politicians who vowed to be fiscally responsible and living within one's means .... were voted out. After a few years .... we now have this catastrophic mess.

What's my take for the future .... Cyprus is broke and they will grab this money. But what concerns me is that other countries are now looking at this situation and are probably wondering if they should implement the same thing. If I was living in Greece, Spain, or Italy .... I would be taking my money out of my bank accounts right now.

Update #1: I am not a fan of Alex Jones .... but he has been shockingly right on this one.
Update #2: Russians have been hit particularly hard by this Cyprus measure.

Is This The Start Of The Next Financial Crisis

Why Today’s Cyprus Bailout Could Be The Start Of The Next Financial Crisis -- Washington Post

It is a bad day to have your money deposited in a bank in the Mediterranean island nation of Cyprus. And it may just mean some bad days ahead for the rest of us.

Early Saturday, the nation reached an agreement with international lenders for bailout help. Part of the agreement: Bank depositors with more than 100,000 euros ($131,000) in their accounts will take a 9.9 percent haircut. Even those with less in savings will see their accounts reduced by 6.75 percent. That’s right: Anyone with money in a Cypriot bank will have significantly less money when the banks open for business Tuesday than they did on Friday. Cypriots have reacted with this perfectly rational reaction: lining up at ATM machines to try to get as much money out in the form of cash before the money they have in their accounts is reduced.

Read more .....

Update #1: Cyprus Bank Deposits to Be Taxed in $13 Billion Bailout -- Bloomberg
Update #2: Cyprus parliament to vote on savings levy -- Reuters

My Comment: This is unbelievable .... out of the blue the government decides to seize a part of your savings. Here is an easy prediction .... no one is now going to invest a penny in Cyprus right now, and it would not surprise me if other governments (like Greece, Spain, etc.) are now looking at the situation in Cyprus as a solution to their own debt problems.

Is Greece And Spain Becoming Failed States?

Protesters take part in a sit-in during a demonstration outside Madrid's Parliament, September 26, 2012. World markets improved slightly, Thursday morning, though investors remain worried about violent protests in Spain and Greece. Susana Vera/Reuters

Euro Turning Greece And Spain Into Failed States -- Robin Shepherd, The Commentator

Jobless rates in Spain and Greece have reached staggering proportions. And as long as these countries retain the euro, the prospects of recovery are slim.

Barely had European Commission President Jose Manuel Barroso declared yesterday that the worst of the eurozone crisis was behind us than the European statistical office, Eurostat, released the kind of unemployment data that could make your hair stand up on end.

Greece and Spain, the figures showed, now have jobless rates of 26 and 26.6 percent respectively.

The more you look into it the worse it gets. Since November 2011, the Spanish unemployment rate has risen by 3.6 percentage points while Greece's unemployment rate has soared by 7.1 percentage points.

The trend, in other words, is emphatically upwards. Few could be surprised if either or both of these countries passed the 30 percent mark by the end of this year.

Read more ....

My Comment: It may be convenient for some to blame the euro for the mess that exists in these countries .... but the sad fact is that it is the voters in these countries who voted in the politicians and their programs that put these countries into the mess that they are in right now. Before the crisis hit everyone in Europe knew that these countries had a culture of corruption, a habit of profligate spending and expanding entitlements that were not sustainable .... followed then by more spending and debt. So that when the perfect storm finally hit in 2008 .... no surprise .... everything collapsed.

Both Spain and Greece will not turn into failed states .... that in fact one day they will find their way .... my prediction .... I give it another 10 - 15 years. (I say 10 - 15 years because it is took that long for Russia to solve it's debt and financial/unemployment crisis when the old Soviet Union broke down).

Is Europe Approaching It's Fiscal Cliff Before The U.S.?

We May Yet Face A Euro Meltdown -- Bill Jamieson, Scotsman

THE fiscal crisis across Europe puts even America’s problems in the shade. We are truly ‘on the edge’, writes Bill Jamieson.

Never underestimate the capacity of the eurozone to upstage America when it comes to fiscal crisis. Barely had the graciously bipartisan post-result speeches been delivered than the fine words were lost in a torrent of commentary about the approaching US “fiscal cliff”.

But it is more likely to be the eurozone, not the United States, that will wobble on an even more precarious fiscal cliff in the coming weeks.

Over the past month troubling economic data has emerged from the single currency area. As if following the well-rehearsed practice of picking a good day to bury bad news, the European Commission let slip yesterday, while all eyes were turned to America, sharply downgraded forecasts for the EU and the eurozone. These figures had a bigger negative effect on markets than the pressing problems of America’s budget deficit post the Obama triumph.

Read more ....

My Comment: The tsunami of debt that these nations have piled up on themselves is truly incredible .... and I am not even including the unfunded liabilities. They are not even close to being able to pay the interest .... and with no political or public support for real austerity and spending cuts, it is becoming more easier to see this "house of cards" falling down.

IMF: Continued Austerity In Europe Will Lead To Unrest

IMF: Austerity in EU Risks Becoming Politically, Socially Untenable -- Wall Street Journal

WASHINGTON--Budget-tightening in ailing euro countries is at serious risk of becoming politically and socially untenable, one of the major liabilities threatening another round of recessions around the globe, the International Monetary Fund told world financial leaders.

Uncertainty over how governments in the U.S. and Europe will handle their mounting economic crises is rapidly increasing the risk of global growth falling next year to below 2%, the IMF said in a report to the Group of 20 largest industrialized and developing economies this week. That compares with a current growth projection of 3.6% for 2013, and translates into recessions in advanced economies and a serious slowdown in emerging markets such as Brazil, India and China.

Earlier this year, the IMF estimated there was around a 4% probability of global growth falling to such sub-2% levels. Now, the IMF said that probability is closer to 20%.

Read more ....

Update #1: IMF warns of political limits to austerity -- The Australian
Update #2: IMF and EU face tough choices on Greece debt -- Reuters

My Comment: The EU is critical of the IMF's report .... and of course austerity makes those dependent on government assistance desperate .... but the bottom line is that there is no more money to give to those EU nations who have spent themselves to these ridiculous and unsustainable spending and debt levels .... and the lenders (understandably) want guarantees for good behavior before another euro is dished out. My advice to the lenders .... do not wait too long.

Will The Collapse Of The Euro Plunge Europe Into War

Europe Could Be Plunged Into War If Euro Collapses -- The Telegraph

Vince Cable has warned that Europe could be plunged into war if the crisis in the eurozone results in the collapse of the currency.

The Liberal Democrat Business Secretary said that the potential consequences of the failure of the Euro were "incalculable" and that there was "no automatic guarantee" that the continent would not disintegrate into conflict.

His comments come days after the Nobel Peace Prize was awarded to the European Union in recognition for its success in warding off conflict since the Second World War.

Speaking at the Cheltenham Literary Festival, Mr Cable said: "I think we need to take stock that if the eurozone were to unravel in a way that destroyed the European project - and there is a risk that could happen - the consequences would be absolutely incalculable.

Read more ....

My Comment: More fear mongering from a Euro supporter. What's my take .... the financial structure of the EU coupled with gross incompetence from previous governments in Greece, Spain, etc., is what is causing the collapse of the Euro and subsequent rise in tensions throughout Europe. In fact .... by maintaining the Euro in it's present form one must wonder if this may in fact make a bad situation even worse.

The Euro Crisis Is Not Over

Why the Euro Crisis Is Nowhere Near Being Over -- Michael Sivy, Time

Bailouts and easy money won't be able to resolve the structural problems of the euro zone, and increasing austerity won't fix things either.

It’s astonishing, but everyone is behaving as though the euro crisis were over. Long-term bond yields are bellwethers of investor confidence. And over the past few months, yields on 10-year Spanish bonds have fallen from 7.5% to 6%, while those on similar Italian issues have dropped to 5%. The U.S. stock market seems equally upbeat. The S&P 500 finished the third quarter last week at its highest level in more than four years. Share prices are shrugging off not only the likelihood of an economic slump in 2013, but also the possibility that a crisis in the euro zone could send shock waves throughout the global banking system.

Read more ....

My Comment: The problem has always been the same. Past governments borrowed too much money .... and today's tax payers do not want to pay off these debts. More to the point .... German taxpayers do not want to pay-off Greek/Spanish/Italian debts.

Protests And Riots Breakout In Spain And Greece Over Austerity Measures

European Markets Jolted Amid Protests in Greece and Spain -- New York Times

ATHENS — After a period of relative calm, European markets shuddered once again on Wednesday as protests erupted across Greece and demonstrators surrounded the Spanish Parliament for a second day to protest the austerity program of Prime Minister Mariano Rajoy.

Earlier this month, the European Central Bank announced its intention to buy unlimited quantities of debt from European nations, including the troubled economies of southern Europe. That kept the peace in the financial markets until Wednesday, when political instability spooked investors, with the Spanish stock market dropping 3.9 percent and even the German DAX falling by 2 percent. The interest rate on the 10-year Spanish bond, which had been declining, inched closer to the ominous 6 percent level.

Read more ....

More News On Wednesday's Protests And riots In Spain And Greece

Anti-austerity protests erupt in Greece and Spain -- Financial Post/Reuters
Protests against budget cuts in Spain, Greece rock world markets -- USA Today
Anti-Austerity Protests Reignite on Streets of Greece and Spain -- PBS Newshour
Greek workers strike; Spanish protests growing -- American Thinker
Exclusive: IMF, EU clash over Greece's bailout prospects -- Reuters
Athens descends into violence as 200,000 march against austerity -- The Guardian
Greece protests turn violent during general strike -- The Telegraph
Rage against austerity: Protesters in gas masks, helmets clash with Greek police -- NBC
Greek anti-austerity protesters clash with police in Athens -- L.A. Times
Thousands protest austerity measures in Greece -- CNN
Athens clashes as Greek police fire tear gas - -BBC
Spain's crisis flares again as AAA club scuppers bank rescue deal -- The Telegraph
Spain: rubber bullets fired at violent anti-austerity protest -- The Telegraph
Photos Of The Giant Protests Rocking Greece And Spain -- Business Insider

Is Greece About To Be 'Kicked Out" Of The Euro?

What If Greece Leaves the Euro? -- Milton Ezrati, National Interest

Greece has done it again. In every previous stage of Europe’s crisis, Athens has had to go back to other members of the currency union, admit budget shortfalls, and ask for more financial help. The pattern has repeated itself once more. Greece’s still-new prime minister Antonis Samaras had to ask for more funds recently, even as he has had to beg for more time to meet agreed budgetary targets. But there is one key difference this time.

Many, particularly in Germany but also elsewhere in the euro zone, seem to have reached the limits of their patience. For the first time, officials have begun to speak openly about expelling Greece from the currency union. After more than two years of constant crisis, such responses are understandable. But the consequences of such a break might well carry more pain and expense than would further accommodations and compromises, so expulsion may be less likely than the rhetoric might indicate.

Read more ....

Update #1: Thousands of Greeks protest against new round of austerity cuts -- Reuters
Update #2: Fate of eurozone rests in the hands of German judges -- The Guardian

My Comment: The problem is contagion. One country falls .... the others will follow. Faced with the hard and difficult choice to limit and cut government, problem nations in the Euro are looking for alternative ways to only delay the inevitable (i.e. let the next politician deal with it). Many European countries have clearly met their breaking point, and it would not surprise me if Greece will be used as the "poster child" of what happens when it is finally booted out of the Euro .... financial crisis and all.

Drastic Measures To Save The Euro

Thursday was a busy day for Mario Draghi (second from right), seen here as he arrives for the M100 Media Prize award ceremony in Potsdam with German Finance Minister Wolfgang Schäuble (left). Reuters

No Limits: ECB President Draghi Reaches For The Bazooka -- Spiegel Online

European Central Bank President Mario Draghi has taken a bold step this week to contain the euro crisis. The ECB is now planning unlimited bond purchases in order to prevent an escalation of the euro's woes. The step marks a fundamental shift in efforts to save the common currency -- and comes with plenty of risks.

The big moment almost fell through at the last minute. Thirty minutes before Mario Draghi planned to announce a turning point in the two-and-a-half year drama to rescue the euro, the fire alarm in the Euro Tower in Frankfurt went off. The elevators in the entire European Central Bank headquarters were placed out of service and two fire trucks arrived at the scene. It turned out to be a false alarm and the emergency vehicles drove away a short time later.

Read more ....

My Comment: Some believe that this will save the euro .... others are more cautious. What's my take .... the ECB is doing the dirty work for the governments of Europe. If the Euro countries cannot control their spending, increase economic output, and bring down their debts .... this exercise will only aggravate and worsen the crisis next year. What's my prediction ..... my money is on the crisis getting worse.

The Euro Crisis Continues To Grow

Moody's has cut the European Union's long-term outlook from stable to negative. The Telegraph

Fears Rising, Spaniards Pull Out Their Cash and Get Out of Spain -- CNBC/New York Times

It is, Julio Vildosola concedes, a very big bet.

After working six years as a senior executive for a multinational payroll-processing company in Barcelona, Spain, Mr. Vildosola is cutting his professional and financial ties with his troubled homeland. He has moved his family to a village near Cambridge, England, where he will take the reins at a small software company, and he has transferred his savings from Spanish banks to British banks.

Read more ....

More News On The Euro Crisis

Eurozone crisis live: Moody's cuts EU outlook to negative; Germany tells Greece to keep reforming -- The Guardian
Debt crisis: live -- The Telegraph

European leaders prepare to meet on economic crisis -- Mercury News/Bloomberg
Moody’s lowers EU credit rating outlook to ‘negative’ -- France 24
Spain's Capital Flight Now Worse Than Asian Financial Crisis -- CNBC
Germany’s Image Damaged by Euro-Crisis Sniping, Westerwelle Says -- Bloomberg Businessweek
Euro Crisis Challenges Sweden and Switzerland -- Wall Street Journal
Swiss economy shrinks under euro crisis pressure -- Reuters
Crisis contagion: Swiss economy gets closer to recession amid global slowdown -- RT
Euro crisis could be over in '1-2 years' -- SKY News
Buying time essential to resolution of euro crisis -- Dan O'Brien, Irish Times

Moody's: EU Rating Outlook To Negative

Moody's Changes EU Rating Outlook To Negative -- Reuters

(Reuters) - Moody's Investors Service has changed its outlook on the Aaa rating of the European Union to negative, warning it might downgrade the bloc if it decides to cut the ratings on the EU's four biggest budget backers: Germany, France, UK and Netherlands.

The move will add to pressure on the European Central Bank to provide details of a new debt-buying scheme to help deeply indebted euro zone states at its policy meeting on Thursday.

Back in July, Moody's changed its outlook for Germany, the Netherlands and Luxembourg to negative as fallout from Europe's debt crisis cast a shadow over its top-rated countries. The outlook on France and the UK are also negative.

Read more ....

Update: Moody's downgrades EU rating outlook to 'negative' -- AFP

My Comment: U.S. firms are getting ready for the eventual collapse of the Euro.

September Will Be Decision Time For The Euro

September Is The Cruelest Month -- Foreign Policy

Welcome back from summer holiday, Europeans! Get ready for 30 days that will determine the fate of your continent.

When German travelers return from their hallowed August vacations this week, they will find that the euro is gone -- at least as far as Frankfurt airport is concerned. Without much fanfare, the massive euro sculpture, a fixture at Germany's largest airport since 2001, was unceremoniously dispatched in the dead of night to make room for an inter-terminal railway.

Read more ....

My Comment: I cannot see the Euro surviving. Too much debt, and an unwillingness among those who own it to pay it .... and those who are owed an unwillingness to give more.

China Expresses Worries That Europe's Debt Crisis Is Worsening

Chinese President Hu Jintao (R) shakes hands with German Chancellor Angela Merkel in Beijing, capital of China, Aug. 30, 2012. (Xinhua/Pang Xinglei)

Chinese Premier Urges Greece, Spain And Italy To Sort Out Debt Crisis And Admits He Is 'Worried' -- Daily Mail

* Wen Jiabao expressed his alarm at Europe's debt problems after meeting today with German Chancellor Angela Merkel
* 'Frankly speaking, I am worried,' Chinese Premier Wen Jiabao said
* Merkel is in Beijing for talks aimed at boosting trade and allaying Chinese fears about Europe's heavy government debts
* China's leaders are increasingly worried about European economies where Chinese companies are expanding

China yesterday sounded the alarm over ‘worrying’ developments in the eurozone and called on debt-ridden countries to put their finances in order.

Speaking after meeting German Chancellor Angela Merkel in Beijing, Chinese Prime Minister Wen Jiabao voiced concerns over the future of Greece, Spain and Italy and the effects that the eurozone’s problems are inflicting on the rest of the global economy.

Read more ....

Update #1: China’s Wen, meeting Merkel, says impact of crisis worsening, calls for action on Europe debt -- Washington Post/AP
Update #2: China's Wen says global crisis worsening -- CBS
Update #3: China’s fears grow over eurozone crisis -- The Telegraph

My Comment: China's concerns are justified .... they know that Europe does not have the political will .... or any support from the public .... to solve this growing catastrophe.

Finland Prepares For The End Of The Euro

Finland Prepares For Break-Up Of Eurozone -- The Telegraph

Finland is preparing for the break-up of the eurozone, the country’s foreign minister warned today.

The Nordic state is battening down the hatches for a full-blown currency crisis as tensions in the eurozone mount and has said it will not tolerate further bail-out creep or fiscal union by stealth.

“We have to face openly the possibility of a euro-break up,” said Erkki Tuomioja, the country’s veteran foreign minister and a member of the Social Democratic Party, one of six that make up the country’s coalition government.

Read more ....

Update: Finland prepares for expected euro zone break up-report -- Reuters

My Comment: Another European country understanding that the days of the Euro as they know it is coming to an end.

Investors Prepare For Euro Collapse

Investors Prepare For Euro Collapse: Currency's Days Seen Numbered -- Martin Hesse, Spiegel Online

Banks, companies and investors are preparing themselves for a collapse of the euro. Cross-border bank lending is falling, asset managers are shunning Europe and money is flowing into German real estate and bonds. The euro remains stable against the dollar because America has debt problems too. But unlike the euro, the dollar's structure isn't in doubt.

Otmar Issing is looks a bit tired. The former chief economist at the European Central Bank (ECB) is sitting on a barstool in a room adjoining the Frankfurt Stock Exchange. He resembles a father whose troubled teenager has fallen in with the wrong crowd. Issing is just about to explain again all the things that have gone wrong with the euro, and why the current, as yet unsuccessful efforts to save the European common currency are cause for grave concern.

Read more ....

My Comment: I agree that the future of the Euro is unsustainable. The reason why is simple .... the debt level for many of these European countries is just too high for there to be any political will to bring it down. Best to run away from it's obligations and hope that someone else will pay the bill .... which people who have money in the system are now expecting.

The Rise Of Anti-German Sentiment In Greece

No Letup In Anti-German Sentiment In Greece -- Deutsche Welle

During the debt crisis Greeks have been badmouthing the Germans - but the Germans have been equally critical of their EU counterparts. Some Greeks want this situation to change.

German tabloids portray Greeks as bankrupt and tell them to sell off their islands to pay their debts - and Greek cartoonists sketch German chancellor Angela Merkel in a Nazi uniform or as a whip-touting animal tamer at the circus. Negative comments by both Greek and German politicians have also not made rapprochement between the two countries easier.

Read more ....

My Comment: I had spent the previous day with a couple who just returned from their family home in Greece. In short .... from their point of view .... Greece has imploded and is in a severe economic depression. And while there may be negative coverage of Germany in Greece, Greeks are now more concerned about survival and getting by than sniping at Germans.