EU Unveils Unprecedented $1 Trillion Loan Package
Posted by Jim Hoft on Sunday, May 9, 2010, 11:45 PM
This doesn’t sound good…
Europe’s debt crisis is starting to affect the bank funding system. Today the European Union unveiled an unprecedented loan package worth almost $1 trillion.
Bloomberg reported, via Drudge:
Europe’s government debt crisis is starting to infect the bank funding system, driving borrowing costs higher from Asia to the U.S. and threatening to slow the global economic recovery.
The interest rate financial companies charge each other for three-month loans in dollars rose to the highest since August, while traders are paying record amounts to hedge against losses in European bank bonds. Yields on corporate debt rose last week by the most relative to government securities since Lehman Brothers Holdings Inc.’s bankruptcy in September 2008, according to Bank of America Merrill Lynch indexes.
European Union policy makers unveiled an unprecedented loan package today worth almost $1 trillion. A statement from the region’s finance ministers highlighted “a risk of contagion which we needed to address.” The European Central Bank will intervene in secondary markets for securities, EU Economic and Monetary Commissioner Olli Rehn said in Brussels after a 14-hour emergency meeting.
“Whether the markets completely unravel depends on whether politicians can stabilize the peripheral government market,” said James Gledhill, who helps manage about 58 billion pounds ($85 billion) as head of fixed income at Henderson Global Investors Ltd. in London. “The tail risk is the stress on banks which stops them from lending to corporates and feeds through to become a real economy problem.”
More… The US Federal Reserve opened an EU line of credit today.
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Published May 24, 2012 at 8:46 pm - 86 Comments
chili palmer commented:
Not that we aren’t bankrupt already, but this will be more American taxpayer money to pay bonuses to fat cat bankers some of whom are in Europe but in any event at least one of whom will be named Soros.
Andreas K. commented:
Good bye tax money.
They do this to “keep the Euro stable.”
So, in order to keep the Euro stable, we spend more money that we don’t have. How is that going to work out? I don’t know.
Austria’s current national debt is 70% of the GDP. 2012 we’ll be at 75% and that’s without this “deal.” I’m expecting 80% soon.
Germany’s off worse. Official national debt is almost 2 trillion Euros. But when you count everything together you end up with more than 6 trillion Euros national debt in Germany. Plus, Germany took 80 billion Euros additional debt with this year’s budget (150 billion of this 320 billion Euros budget actually go into the welfare state.) That’s not counting this “deal” either.
We’ll never see any of this ever again.
The only thing we’ll see next will be other Euro countries jumping on the same train.
Portugal. Spain. Italy. Ireland. Then the eastern countries.
We’ll be bailing them out as well eventually.
And who will bail us out?
The ones carrying the Euro, that’s not Portugal, Greece or Spain. The ones carrying the Euro are Germany, Austria, France, Netherlands, etc.
averagemelon commented:
This is their way of becoming a one world government by force.
Andreas K. commented:
averagemelon
May 10th, 2010 | 3:37 am | #4
This is their way of becoming a one world government by force.
You have no idea how right you are with that. The EU is just the testing ground for the “world government.” How to shove crap down peoples’ throats is tested right here. And it’s working so far. Cause people are sheep.
The “elites” will eventually try all of this on a bigger level.
M Malone commented:
The common currency for Europe was a spectacularly stupid idea.
Militant Conservative commented:
This crap will be foisted everywhere, even here. It will pass everywhere but here. WE have a 2nd amendment and lots of em. Like the song said “Can’t touch this”. it’s hammer time.
powder is dry. bring it on.
NC Cop commented:
Great idea.
What could go wrong?
Andreas K. commented:
I watched BBC news while in the UK, usually when getting ready for theater.
And if you think that US politicians are dumb… try the UK. They beat the US politicians, even Obama, in outright stupidity every day with ease.
Brown, Clegg and even Cameron were whining over how bad the current economic situation is and how the government must fix it. Yes, even Cameron. And Cameron even ranted about “hope” and “change”, that was when I marked him off as “yet another sh*thead.” Clegg is a hopeless kiss-*ss who just loves the EU and wants to drag the UK into the Euro-zone as well. And Brown… Brown… I call him Gordon Braun these days (funny detail about him that I saw: during the service at the Cenotaph in Whitehall Clegg and Cameron were singing along to “god save the queen”, Brown wasn’t; he just stood there looking extremely pissed off.)
Some Labour MP even called the conservatives the losers of this election.
Personally I had hoped for a bigger gain of the conservatives, but I wasn’t really surprised when I saw how many people still voted Labour, even after Labour ruining the UK.
As we say it here: the dumbest sheep chose their butchers themselves (lit. translation.)
They interviewed people on the morning after the election and one couple with children said they voted Labour because… Labour’s programs are so great.
They all voted Labour because they love getting the money from the government. That simple.
Greece is the tip of the iceberg, nothing else. This is going to trigger a domino effect which will eventually hit the UK and Germany as well.
John Gargano commented:
AGAIN, our money goes to prop up those who have squandered theirs on generous entitlement programs, excessive union contracts, government waste and corruption.
It seems while the Liberals love to use the word “unsustainable” when they talk about our consumption of carbon based fuels, they have no concept how to use it when talking about our patterns of squandering money.
Insufficiently Sensitive commented:
The Seattle Times says the news of this monstrous slush fund was ‘greeted by euphoria’ by invstors.
Well, a better description than ‘euphoria’ would be irrational exuberance.
Until European governments can clamp down on their expenditures and their promises of future handouts to their aging, non-procreative citizens, this mighty fund simply buys a few more months, or years maybe, until the crash comes.