Yesterday was quite a news day for the festering debt crisis in Europe.Taxpayers everywhere learned that the IMF's new chief, Christine Lagarde, wants an extra $500 billion to help fight Europe's slow-motion collapse. Trouble is, where does the come from? From nations already up to their eyeballs in... debt, evidently. Count Great Britain and the United States in that category.
No kidding? Greece's economic outlook is worsening? You don't say? So why not force private creditors to flush more money down the Greek drain and into the Mediterranean's crystal blue ? After all, Europe's elites have a lot at stake. Why not strip creditors in a desperate effort to stave off a gargantuan failure made by those very same elites?
But wait, that's not all.
Greece's Aryan benefactors (albeit, reluctantly) have floated the idea that the EU assume controlof the Greek budget. EU bigwigs have shot down the notion of wresting the Greek budget from the Greeks. But those bullheaded Germans insist that the backroom discussions favoring an EU takeover of the Greek budget continue. One of the crack wire services reported rather drolly that Germany's proposed putsch will "likely spark controversy" in Greece. You think?
The European dept crisis is like an enormous redwood falling slowly. But the debt crisis will soon reach a point, as with the falling redwood, where gravity really kicks in and accelerates all that mass (basic physics, huh?).
Cover your ears and steady your feet. Europe's in for one dozy of a crash.
It's been two years since a financial crisis erupted in the birthplace of drama, and the final act is still unfinished. A second week of talks in Athens ended Friday with no deal between the country, the European Union and private holders of Greek bonds.Economists and investors see a Greek default as the biggest test of the world financial system since the crisis that followed the collapse of Lehman Brothers investment house in 2008.So investors will be watching what happens this week in Athens. At the sovereign debt conference, Hans Humes, president of Greylock Capital Management, said this week could bring "the precedent-setting moment." He warned that if the banks and investment funds that hold Greek bonds take steep losses, then Portugal, Italy and other countries shouldering heavy debt burdens can be expected to follow Greece's lead.
To Colas, the deepest concern isn't how the S&P 500 reacts or whether the dollar rises if Greece drops the European currency. It's the possibility for panic, especially a run on European banks.
What if people across France and Germany crowd into banks to pull their deposits? Banks, after all, are some of the largest buyers of government debt.
"Human emotions can drive things off the rails," Colas says.
The fastest way to understand ACTA is to look at the way in which its backers have tried to traIn the United States, for example, President Bush and President Obama hid ACTA negotiations under the veil of , thus keeping it away from prying eyes … including Congress.
As Harvard professors Jack Goldsmith and Lawrence Lessig wrote in the Washington Post in March 2010:...it raises the stakes on the by which the administration proposes to make the agreement binding on the United States.But the Obama administration has suggested it will adopt the pact as a “sole executive agreement” that requires only the president’s approval.