Seeking Alpha

European finance ministers are due to reconvene on Wednesday after yesterday failing to agree on...

European finance ministers are due to reconvene on Wednesday after yesterday failing to agree on rules about who should bear the brunt of rescuing failing banks in the EU so that taxpayers don't have to. Germany and other eurozone countries want to use Cyprus as a template and impose losses on shareholders, bondholders and then deposits of over the €100,000. France, Britain, Denmark and Sweden want flexibility in whether to take such steps.
Comments (12)
  • Speaking of fail. It's hard to believe that these people are still running in the mud at this late date.

     

    We need a series of global economic summits with all big economic powers and some kind of a 'reset' on debt.

     

    Look at all of the resources that the world has and we are now 'confined' by capitalism, in its present form.
    23 Jun 2013, 09:42 AM Reply Like
  • Capitalism works. What does not work is Europe's pseudo-union.
    23 Jun 2013, 05:49 PM Reply Like
  • Well, this news ought to ensure a new plunge on Monday, if nothing else.

     

    I have previously been rather sanguine that the EU would, at some point, do what's necessary to recapitalize its banks, expand the money supply and getting economies re-stimulated, but I must admit that I am losing faith. Germany (I don't know who "other Eurozone countries" refers to) seems relentlessly intent on some kind of Puritanical, ash-cloth policy that is obviously ruinously deflationary in an economic setting already beset with deflationary woes.

     

    What;s particularly befuddling about this situation is that all of Europe, Germany included, would benefit from a weaker euro, but Germany seems intent on defending it to the death. And, I particularly love the reference above, saying "so the taxpayers don't have to," as if massive deflation, unemployment and economic malaise isn't an imposition on the taxpayers. What, do the Germans think taxpayers are some other mysterious class different from the general public?

     

    If Germany permitted and encouraged the ECB to print euros and use them to buy bank preferred shares, such as was done by the Fed, then Europe could arise from its malaise, and, contrary to being any burden on "taxpayers," people might actually start making some profits on which to pay taxes.
    23 Jun 2013, 10:27 AM Reply Like
  • Well written...I agree..healthy economies will fix everything...
    23 Jun 2013, 12:10 PM Reply Like
  • "Germany...seems relentlessly intent on some kind of Puritanical, ash-cloth policy"

     

    It's the German thing to do. Been my concern all along that German "idealism" would make rational compromise impossible.
    24 Jun 2013, 12:35 AM Reply Like
  • The whole gov't financial thing is in such a mess that somewhere down the road all countries (except maybe China and India) are going to have to revalue their currencies and just write off debt. There is no solution to paying down substantially the USA debt as it is. And the same thing exists in Europe! But,,,the pain will be kicked down the road because no gov't or politician will stand up and talk straight to the people of any country. Own Gold......and Silver.......eventually it will sky rocket and no gov't can stop it. Also,,,interest are at the point that investors are beginning to require higher interest rates (with a negative return now) or they are not going to buy but just let their money sit in 'cash'! There are no answers to this financial mess!
    23 Jun 2013, 11:58 AM Reply Like
  • Yes, and it requires a cooperative, global solution. We (USA) can "do" the correct thing, and if one of these major countries goes down, we all go down together. So much money moves globally every day it is amazing. We are in the same boat now.
    23 Jun 2013, 12:12 PM Reply Like
  • The orgy of debt and unfunded liabilities over the last 50 years has produced this problem. Expecting it to be "fixed" by the same institutions and academic theories that created it is laughable. Further, expecting it to be "fixed" in the short term is also irrational. The "fix" lies with individuals who must correct their personal circumstances through their own efforts. You'll never see that legislated. Relying on governments to "fix" things is folly.
    23 Jun 2013, 12:54 PM Reply Like
  • market is gonna fall more!
    23 Jun 2013, 02:58 PM Reply Like
  • Only politicians and their bureaucratic minions could think that confiscation of grandma's nest egg is the best solution to poor regulatory oversight and lax risk control (in the name of large YoY profits) at the large financial institutions. Meanwhile they will be collecting yearly indexed pensions beyond what the average person can only dream of earning at their current, and most likely tenuous, employment.

     

    If there ever was a time to begin spreading your savings amongst several institutions I think now is that time.
    23 Jun 2013, 03:07 PM Reply Like
  • We have been in the third world war for a while, just in another different form.
    23 Jun 2013, 04:56 PM Reply Like
  • Why would anyone keep money in an EU bank other than for bills and such? Ask a citizen of Italy that question and they may give you a surprising answer. I'm sure other EU countries have some of the strong restrictions, I am just not aware of them, yet.
    23 Jun 2013, 11:17 PM Reply Like
DJIA (DIA) S&P 500 (SPY)