Topic: EuroBank Collapse?

[Sectionhand]

If the EuroBank continues to subsidize a failed socialist ( read communist ) state like Greece then it deserves to go under . This sh*t has to stop somewhere ! 

[Pandora]

Courtesy of the recently declassified Fed discount window documents, we now know that the biggest beneficiaries of the Fed's generosity during the peak of the credit crisis were foreign banks, among which Belgium's Dexia was the most troubled, and thus most lent to, bank. Having been thus exposed, many speculated that going forward the US central bank would primarily focus its "rescue" efforts on US banks, not US-based (or local branches) of foreign (read European) banks: after all that's what the ECB is for, while the Fed's role is to stimulate US employment and to keep US inflation modest. And furthermore, should the ECB need to bail out its banks, it could simply do what the Fed does, and monetize debt, thus boosting its assets, while concurrently expanding its excess reserves thus generating fungible capital which would go to European banks. Wrong. Below we present that not only has the Fed's bailout of foreign banks not terminated with the drop in discount window borrowings or the unwind of the Primary Dealer Credit Facility, but that the only beneficiary of the reserves generated were US-based branches of foreign banks (which in turn turned around and funnelled the cash back to their domestic branches), a shocking finding which explains not only why US banks have been unwilling and, far more importantly, unable to lend out these reserves, but that anyone retaining hopes that with the end of QE2 the reserves that hypothetically had been accumulated at US banks would be flipped to purchase Treasurys, has been dead wrong, therefore making the case for QE3 a done deal.

In summary, instead of doing everything in its power to stimulate reserve, and thus cash, accumulation at domestic (US) banks which would in turn encourage lending to US borrowers, the Fed has been conducting yet another stealthy foreign bank rescue operation, which rerouted $600 billion in capital from potential borrowers to insolvent foreign financial institutions in the past 7 months. QE2 was nothing more (or less) than another European bank rescue operation!

http://www.zerohedge.com/article/exclusive-feds-600-billion-stealth-bailout-foreign-banks-continues-expense-domestic-economy-

[charlesoakwood]

After the last election Republican leadership refrained allowing Ron Paul to chair House Financial Services Committee this weak action left the door open for the Fed and Treasury to continue their shenanigans.
Paul had declared plans for hearings and investigations which the Ruling Class successfully snuffed.

[Weisshaupt]

Below we present that not only has the Fed's bailout of foreign banks not terminated with the drop in discount window borrowings or the unwind of the Primary Dealer Credit Facility, but that the only beneficiary of the reserves generated were US-based branches of foreign banks (which in turn turned around and funnelled the cash back to their domestic branches)

The whole banking system and world economic system is interconnected. If it wasn't China wouldn't be able to loan us money sowe could buy thier products,  which is the same thing the US did after WWII.  But this shows why US Dolla inflation seems to be so muchhigher overseas.. I thought it was largely because of actual exports, but that appears  to be only part of the story - much of the QE2 was in fact loaned out overseas. However, wedid buy something for that - time.  THe world is focused on Europe and thier problems and the U.S. dollar is still seen as a "safer bet" than the Euro.  Using this scheme they were able to prop up both markets.  Kicking the can down the road so to speak.  Which is fine with me.The more time w get to prep the better.  The slower we ease into our new 3rd world status, the fewer all out riots we will see, and there is a chance to maintain law and order.  Of course, that may also give them time to strengthen the police state as well.

[Libertas]

Greece is screwed and they are screwing Europe in the process.  They (the socialists) cannot have their cake and eat it too, but they still try, and now the angry mob that was once their bling & loyal supporters are eager to pillage and murder...and all the bankers did is suspend their quarterly support payment under the old agreement to bail them out.  The rest of the PIGS will topple like dominos and then the bigger nations will literally be under the gun.

ZH's summary of the Euro statement is spot on.

http://www.zerohedge.com/article/official-statement-insolvent-europe-insolvent-greece?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29

Socialism, why it exists in any form, is a testament of how truly lazy and deluded sheeple are!!!

[Libertas]

Euro is getting pounded because of Greece...

The dollar is gaining on the Euro and Pound, but declining against everyone else, so we are only benefiting from someone elses worse misery...for now...

[charlesoakwood]

At one time Merkel suggested they sell assets, such as their islands, for cash and pay their debt, too bad she didn't stick to it.

[Libertas]

Probably because they are not worth enough to be a viable option, especially now since real estate in general has deflated...

[Glock32]

For us, "socialism works until you run out of other people's money" is self-evident. But for them it is no such thing. For them, the corollary is "when you run out of other people's money, start seizing their property. They stole it from 'the people' anyway"

[Sectionhand]

I don't see much hope for the future when the EuroBank and socialst governments are tighter than the nuts on a switch engine !

[Libertas]

Speaking of nuts...

This is a decent analysis (can't believe an NBC division came up with this), basically says the Euros will meet their Waterloo in Italy, not Greece or Spain, although the latter two will be warning bells going into Italy!

http://www.cnbc.com/id/43474315

[Libertas]

Greek PM survives no-confidence vote.

ZH posted this interesting take...

http://www.zerohedge.com/article/not-program-salvage-greek-economy-its-program-pillage-bankruptcy?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29

Yes, parasites intend to feed on a carcass until there is nothing left, then move on to a new host.

"The problem with socialism is that eventually you run out of other people’s money’" - Margaret Thatcher

Chickens, see roost.