GFC "Entering Dangerous Phase": EU Seen Going Off the Rails

[cieldumort]

Start the countdown clock to another leg down in the ongoing Global Financial Crisis

• Merkel: Time to design a "New Europe"
• Markets: Contagion spreading beyond control
• Eurozone: No plans to rescue Italy
• Think Tank: 65% Chance of severe banking crisis by month's end

CNBC
Market Selloff: 'Contagion Spreading; They've Got to Stop This'
Fears that Italy, the

Comments

Hang on

[sinistertim101]

I am so glad I am too broke to have substantial savings. I would be sweating otherwise and considering moving to all cash until Italy is resolved.

Greece is laughable, but Italy defaulting or its bank going frozen could create a domino. Unlike the US in 2008, this one can't be bailed out.

I think we need a restart as too much debt creates false wealth but I do not want anyone who has saved and is retiring to be penniless either. WOW

Re: Hang on

[cieldumort]

That assumes several caveats, however:

First, that Italy is, in fact, resolved.

And second, that there aren't other Italys or Lehmans still out there, even if Italy gets resolved.

Re: Hang on

[cieldumort]

That deserves a new tag!

http://the-recession.livejournal.com/tag/the%20walking%20debt

[sophiaserpentia]

At some point, the bankers will *have* to take a hit without getting bailed out. They created more debt than there exists money in the entire world to pay it, several times over.

[cieldumort]

I'm sure they'll think up something to prevent that.