European bank bail-out could push EU into crisis (16.3 trillion needed?)

Telegraph ^ | 02/11/09 | Bruno Waterfield

[TigerLikesRooster]

European bank bail-out could push EU into crisis

A bail-out of the toxic assets held by European banks' could plunge the European Union into crisis, according to a confidential Brussels document.

By Bruno Waterfield in Brussels

Last Updated: 3:50PM GMT 11 Feb 2009

“Estimates of total expected asset write-downs suggest that the budgetary costs – actual and contingent - of asset relief could be very large both in absolute terms and relative to GDP in member states,” the EC document, seen by The Daily Telegraph, cautioned.

"It is essential that government support through asset relief should not be on a scale that raises concern about over-indebtedness or financing problems.”

The secret 17-page paper was discussed by finance ministers, including the Chancellor Alistair Darling on Tuesday.

National leaders and EU officials share fears that a second bank bail-out in Europe will raise government borrowing at a time when investors - particularly those who lend money to European governments - have growing doubts over the ability of countries such as Spain, Greece, Portugal, Ireland, Italy and Britain to pay it back.

[TigerLikesRooster]

The reference to 16.3 trillion(not sure in pounds or dollars) was said to be there but is now gone, but the following is the link to the article, which still has '16.3 trillion' as a part of its file name.

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/4590512/European-banks-may-need-16.3-trillion-bail-out-EC-dcoument-warns.html

[TigerLikesRooster]

Ping!

[GoLightly]

Since this seems to be worldwide, can’t figure out why they don’t accept a cross the board devaluation, revaluation & allow everything to seek its own level. Throwing fiat at it just means fallible men picking winners & losers. We are sooo screwed.

[DuncanWaring]

If you look at the HTML < title> it’s got that funny-looking crossed “L” for “Pounds”.

[TigerLikesRooster]

OK. Thanks for digging it out.:-)

[rightwingextremist1776]

It seems to me the obvious point to all this is that socialism has already failed....and the point at which the total collapse of socialist policies is at hand. The teat of capitalism has run dry. And yet the left still cries that all too familiar phrase of the failure of capitalism.

[PSYCHO-FREEP]

Just do like the US is doing, promise more money later and start printing now.

[davidosborne]

this should be our wake up call folks.. if this does not motivate you to call your senators and tell them to vote NO on porkulous than I don’t know what will...

I posted this on facebook and encourage you to get the word out on this..

David

[davidosborne]

Pass it on..

[E.G.C.]

BTTT

[gieriscm]

Things aren't rosy in the US either, per our own Dep't of Treasury.

[davidosborne]

exactly why we need to NOT pass this porkulous bill... let the markets correct itself and our recovery will be faster and we will be stronger in the end..... if we try to PRINT our way out the problem the recovery will only take LONGER and we will be weaker in the end

[Marine_Uncle]

Notice how quiet the Arabs have been over this mess. They got screwed every bit as much as the rest of the world.

[davidosborne]

exactly.... this is what socialism leads to... any AMERICAN who fails to see this will cause us to be in the exact same position...

[Chgogal]

Here is some interesting information regarding Europe and “toxic assets”.

On Feb 11, I read on the Drudge an article by the Telegraph stating that European banks were sitting on 16.3 Trillion Pounds of toxic assets. Since then the Telegraph has sanitized the article.

Here is the Telegraph article as it now stands:
http://www.telegraph.co.uk/finance/financetopics/financialcrisis/4590512/European-banks-may-need-16.3-trillion-bail-out-EC-dcoument-warns.html

Here is the Telegraph article as it read on Feb 11.
http://forum.globalhousepricecrash.com/index.php?showtopic=47586

Here is an explanation by a sleuth of what happened:
http://www.creditwritedowns.com/2009/02/are-european-banks-sitting-on-163-trillion-in-toxic-assets.html

The last link is very interesting reading.

What interests me is the complete WORLD WIDE melt down. It’s not just Wall Street. If the original Telegraph article was correct, the EU is in worse straights than ever imagined. Singapore, Taiwan and South Korea are facing double digit GDP numbers. Japan is doing worse than expected. China is a basket case, as is Russia. It is unfortunate for the world that Children are running the Economy in the US.

If someone has a 12 step program to financially survive the next few years, I am all ears.

[PapaBear3625]

If someone has a 12 step program to financially survive the next few years, I am all ears.

Cut back lifestyle, pay down debt, do not do anything that would increase your fixed personal overhead.

People were telling me I was a fool to pay off my mortgage instead of putting the money in the market. Well, no mortgage means that I can weather a bad financial storm better than most.

[Chgogal]

“Cut back lifestyle, pay down debt, do not do anything that would increase your fixed personal overhead.”

Check, check and check. : )

Now I have 9 more steps.... ; )

[Nevada Outback]

Everyone (especially Freepers)should read the book The Creature from Jekyll Island, A Second Look At the Federal Reserve by G. Edward Griffin. By doing so, you will begin to understand the true motives of the bankers and the government.