# Europe



## bohar (Jun 12, 2012)

I was told that the European currency is about to drop and Europe has about 90 days. Look
It up, I did. Scary!!!! It's coming!!!!


----------



## alwaysready (May 16, 2012)

bohar said:


> I was told that the European currency is about to drop and Europe has about 90 days. Look
> It up, I did. Scary!!!! It's coming!!!!


Europe has about 90 days until what? How about a link.


----------



## BillS (May 30, 2011)

Most likely it's the euro that has about 90 days before it collapses. I've seen stories to that effect but I'm not sure where right now. Greece is leaving the euro. Spain will probably be next. Italy after that.


----------



## mojo4 (Feb 19, 2012)

Add to that Great Britian's citizens want out of the EU. Something like 80 percent want out. They still use the pound and not the euro but still its bad news for the EU. I don't think Germany wants to be the only one paying the bills. They don't feel that bad about WW1 and WW2!!


----------



## labouton (Jan 24, 2011)

If they discard the EU, do they go back to their old currency?


----------



## BillS (May 30, 2011)

labouton said:


> If they discard the EU, do they go back to their old currency?


Yes, that's what each country will do. Greece, Spain and Italy will have a weaker currency. After Germany leaves the euro they'll go to a stronger currency.


----------



## Chinookers (May 11, 2012)

alwaysready said:


> How about a link.


Saw the article here --> http://www.examiner.com/article/imf...-time-almost-gone-to-act?cid=CommunityPacific


----------



## Immolatus (Feb 20, 2011)

Yes, the EU is just about cooked, but I think they could kick this can for a looong time. It all depends on how long Germany is willing to prop up the periphery. They cant bail them all out forever, and I would think once one of em goes, the rest of the dominoes would fall pretty quickly.
Im leery of anyone putting a time on this though, because its been in the works for a while now. Cant keep printing forever!


----------



## partdeux (Aug 3, 2011)




----------



## CulexPipiens (Nov 17, 2010)

Collapse... yes.

When... just a guess. From day to day reports and info make it sound highly likely one minute to maybe some years from now the next. There are already plans drawn up for how to take a country off the Euro, (i.e. Greece) and include such suff as limited ATM and bank withdrawls and such. In order to get off fairly quickly it would require a completely electronic monetary system... otherwise figure 2-3 months to print enough currency. 

Maybe I'm being optimistic but I would think of some place is churning out new drachmas (sp?) over the course of a few months that someone would eventually slip up and tell someone else... so far I haven't heard of any rumors of printing actually being in progress. That doesn't mean it is or isn't happening, just no sources one way or the the other reporting anything.


----------



## partdeux (Aug 3, 2011)

CulexPipiens said:


> Collapse... yes.
> 
> When... just a guess. From day to day reports and info make it sound highly likely one minute to maybe some years from now the next. There are already plans drawn up for how to take a country off the Euro, (i.e. Greece) and include such suff as limited ATM and bank withdrawls and such. In order to get off fairly quickly it would require a completely electronic monetary system... otherwise figure 2-3 months to print enough currency.
> 
> Maybe I'm being optimistic but I would think of some place is churning out new drachmas (sp?) over the course of a few months that someone would eventually slip up and tell someone else... so far I haven't heard of any rumors of printing actually being in progress. That doesn't mean it is or isn't happening, just no sources one way or the the other reporting anything.


Fractional reserve banking system means the banks are allowed to lend out multiple times their assets. If somebody knows the exact formula, feel free to jump in, and I'm not sure how things like mortgages are counted in their asset column. Now that I have that out of the way ...

A bank is allowed to loan out 9 (guessing at the number for now) times what they have as cash on hand. So if Joe deposits $100, the bank is allowed to loan Tim $90. This happens over and over and over again. In general there's enough participants in the game that when Joe comes to collect his $100, Greg will deposit another $100. If Joe collects his $100, then suddenly the bank is $100 in the hole, and their required "reserve" of $10 is no longer there. If enough people start pulling their money out of the bank, the bank is insolvent. Normally if a bank experinces something like this, especially in the US, the FDIC steps in to stabalize the situation and supply the need cash to reset the banks balance sheet. This works on the small scale quite well... right up until the bank is SO BIG, aka CitiBank, or an entire country, aka Greece starts to become insolvent. Then this fractional debt based banking system requieres extraordinary intervention.

What is happening right now, the Euro can not save Greece... they are literally too far gone. Several other countries are at the breaking point and are being forced to continue throwing good money after bad, and are likely to go under themselves. The US "might" have been able to save the Euro, but we are technically in worse shape then Greece. There is the mistaken belief that we are SO big, that we can not fail. IF we do fail, it will be game over across the entire globe and require a massive reset.

Just a side note, what really drove the derivative crisis was the selling of these bad mortgages all bundled together as "good" assets and everybody then counting them as cash to further lend out. I believe that more then anything else is why the banks are NOT selling all these foreclosed houses. They can not afford to take the hit on the asset side of the balance sheet, because the house is booked at 100k, not the 25k it's really worth.


----------



## BillM (Dec 29, 2010)

This very same senerio will play out here in the USA with the Dollar !

If you do the math, the dollar cannot be saved !


----------



## partdeux (Aug 3, 2011)

BillM said:


> This very same senerio will play out here in the USA with the Dollar !
> 
> If you do the math, the dollar cannot be saved !


Which falls right into my expectations, the puppet masters will swoop in with one global currency.


----------



## BillS (May 30, 2011)

partdeux said:


> I believe that more then anything else is why the banks are NOT selling all these foreclosed houses. They can not afford to take the hit on the asset side of the balance sheet, because the house is booked at 100k, not the 25k it's really worth.


I think I read somewhere on Zero Hedge that the banks aren't putting all the foreclosed homes on the market. They're letting people live in their homes longer without paying too. I think it's because if they did the real estate market would crash and that wouldn't help Obama get reelected. The banks can tread water indefinitely because they can borrow money for next to nothing from the Fed and then use the money to buy T-bills. And the laws were changed so they don't have to show all their toxic assets on their balance sheets or disclose them to investors.


----------



## partdeux (Aug 3, 2011)

BillS said:


> I think I read somewhere on Zero Hedge that the banks aren't putting all the foreclosed homes on the market. They're letting people live in their homes longer without paying too. I think it's because if they did the real estate market would crash and that wouldn't help Obama get reelected. The banks can tread water indefinitely because* they can borrow money for next to nothing from the Fed and then use the money to buy T-bills.* And the laws were changed so they don't have to show all their toxic assets on their balance sheets or disclose them to investors.


There's a really good article that I think was on zero hedge about the round trip the money takes. The fed actually charges the govt 6% to loan them the money, and the govt pays out 3-4% on the T-bills, that the banks buy with money they borrow at 0%. It is one of the screwiest convoluted scams ever developed.

The govt via freddie and fannie, bought a lot of the toxic mortgages, at full face value. So when everybody gets upset over freddie and fannie losing money, it should have been the banks that were losing the money... not the taxpayers.


----------



## Tweto (Nov 26, 2011)

Just reported on FBN, 750 million euro's a day being removed from Greece banks. The Greece elections are this weekend and depending on the results, The runs on the banks could go up. The smart money is thinking that Monday will be good for US markets. 

If smart money likes the US markets for Monday, that could be a bad sign for the Euro. I'm not an expert, I just listen to the news.


----------



## BlueShoe (Aug 7, 2010)

labouton said:


> If they discard the EU, do they go back to their old currency?


No--maybe. The EU is the European Union and different than the economic creation of the Eurozone using the Euro as currency. England has remained with the Pound.

George Soros said the Eurozone has an extremely limited time before complete collapse.


----------



## BlueShoe (Aug 7, 2010)

BillS said:


> I think I read somewhere on Zero Hedge that the banks aren't putting all the foreclosed homes on the market. They're letting people live in their homes longer without paying too. I think it's because if they did the real estate market would crash and that wouldn't help Obama get reelected. The banks can tread water indefinitely because they can borrow money for next to nothing from the Fed and then use the money to buy T-bills. And the laws were changed so they don't have to show all their toxic assets on their balance sheets or disclose them to investors.


They've been doing that since the crash of 07-08. They call it something like "off balance sheet obligations". Essentially it's lying to the investors to keep the stock price up and remain solvent.


----------



## UncleJoe (Jan 11, 2009)

*The Euro Titanic*

http://usawatchdog.com/the-euro-titanic/#more-8182

You want to know what's going on right now with the European monetary union and the euro currency? Outspoken Member of the European Parliament, Nigel Farage knows, and he's gotten it right from the very beginning of the sovereign debt crisis. The latest bailout which is really just more debt) is going to Spain, but it won't stop there. Plenty of more money printing (for even bigger bailouts) is on the way.






And then there's this:

*One on One with Charles Biderman*


----------

