DON’T PANIC!!

1 minute read.

I’m not quite sure if anyone else is keeping a running score on all this, but by my calculation, what was going to be a leveraged 440bn euro EFSF turning into 1.3 trillion via Spiv investments, plus an additional 2o0 billion from the IMF (a grand total of 1.5trillion euros) now looks more like 600 billion….falling short by a mere 60%. Or, as a French credit manager put it this afternoon, “Nowhere near enough”.

So in brief, the heads-up is this: thanks to half-bankrupting itself  to buy junk bonds, the ECB doesn’t have enough for proper bank bailouts; all the banks that most need buffers have the smallest ones; and the EU itself has just two euros out of each five required to stop multiple defaults.

via EU CRISIS: The simple problem is, there’s nowhere near enough money. | The Slog.

Leave a Reply