Ambrose Evans-Pritchard–Should the Fed save Europe from disaster?

The dam is breaking in Europe. Interbank lending has seized up. Much of the financial system is paralysed, setting off a credit crunch just as Euroland slides back into slump.

The Euribor/OIS spread or`fear gauge’ is flashing red warning signals. Dollar funding costs in Europe have spiked to Lehman-crisis levels, leaving lenders struggling frantically to cover their $2 trillion (£1.3 trillion) funding gap.

America’s money markets are no longer willing to lend to over-leveraged Euroland banks, or only on drastically short maturities below seven days. Exposure to French banks has been slashed by 69pc since May.

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Posted in * Culture-Watch, * Economics, Politics, * International News & Commentary, --European Sovereign Debt Crisis of 2010, Consumer/consumer spending, Corporations/Corporate Life, Credit Markets, Currency Markets, Economy, Euro, Europe, European Central Bank, Federal Reserve, Globalization, The Banking System/Sector, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--, The U.S. Government

3 comments on “Ambrose Evans-Pritchard–Should the Fed save Europe from disaster?

  1. tgs says:

    No. Down that road lies international monetary control. If that happens the elite financial globalist will have won and will control the world.

  2. Capt. Father Warren says:

    If your brother-in-law had plowed through his life savings at the Casinos, would you lend him $50k until he could hit a winning streak?

    Would you do it, knowing that you would have to borrow $20k from the bank in order to give him the $50k that he was begging for?

    The answers to those questions should inform your answer to the question posed by the news story.

    My answers? No, and, NO!

  3. AnglicanFirst says:

    No.
    The real issue is not their immediate need for money.

    Any money given to them will only follow the path of the money that they have squandered.

    Their unhealthy financial and political situations can only be successfully resolved through financial and political behavior changes.