Posted on 12/07/2011 1:57:45 PM PST by bruinbirdman
If you think that running together Europe’s old rescue fund (EFSF) with the new one (ESM) to double firepower to €880bn is a reassuring move – as some analysts apparently do – you should have your head examined.
The idea of combining the two is an admission that attempts to leverage the fund to €1 trillion plus have essentially failed. The clever ruse by German finance minister Wolfgang Schauble to circumvent the €211bn limit on guarantees imposed by the Bundestag has run into investor scorn.
That Bundestag ceiling remains – and those of us who watched the debate know how emotional it was – so how on earth can Germany’s share be bumped up in this fashion to over €400bn? No wonder a "senior German official" has rubbished the plan today in irate language.
A blizzard of silly proposals has hit the wires this week as a legion of ministers, diplomats, commissars, high secretaries, and fellow travellers all lobby and conspire to create "momentum" behind pet themes. In the meantime, nothing workable is actually on the table before the "summit-to-save-the-euro" on Friday.
Be careful. Do not
(Excerpt) Read more at blogs.telegraph.co.uk ...
Just one question for you, bruinbirdman. Do you ever sleep?
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