Free Republic

Banks, companies and investors are preparing themselves for a collapse of the euro. Cross-border bank lending is falling, asset managers are shunning Europe and money is flowing into German real estate and bonds. The euro remains stable against the dollar because America has debt problems too. But unlike the euro, the dollar's structure isn't in doubt. There is increasing anxiety, particularly because politicians have not managed to solve the problems. Despite all their efforts, the situation in Greece appears hopeless. Spain is in trouble and, to make matters worse, Germany's Constitutional Court will decide in September whether the European Stability...

First Exit Polls released just minutes ago per Twitter: Greece Exit Poll: ND 17-20% PASOK 14-17% SYRIZA 15,5-18,5% AN. ELLHN. 10-12% KKE 7,5-9,5% XRYSH AYGH 6-8% DHMAR 4,5-6,5% This is IMPORTANT, and could dramatically effect the world economies very quickly.

-snip- A run on the banks by savers keen to put their money into a core euro country would bring down the banking system of the departing country overnight. Companies and private households would not have access to loans, nor would they be able access any more cash. The state, which in this situation should support the banks, would be bankrupt as well. Financial markets would deny it access to funding. The new currency, once it is introduced, would depreciate by between 30% and 50%, which would multiply the government’s debts. The depreciation would lead to imported inflation and trigger trade...

Denmark has not yet decided whether it will join the new agreement among the 17 Eurozone members according to Prime Minster Helle Thorning-Schmidt. “Obviously we will have to discuss the issue with Parliament as to whether we join or not. What we have said is that we will be coming to the meeting today, which we will do. But obviously, Denmark has a euro opt-out. We cannot become part of anything until we have discussed the issue with Parliament,” Ritzau reports Thorning-Schmidt as saying. Prime Minster Helle Thorning-Schmidt The agreement reached last night is valid for the 17 euro countries....

ROME — With political turmoil still plaguing Greece and descending upon the much larger economy of Italy, the fate of the euro and market stability worldwide hinged Tuesday on whether two of Europe’s most tangled and unresponsive political cultures could deal with their tightening fiscal gridlock. The prospect of a new transitional, technocratic government in Greece, and signs that Silvio Berlusconi’s resilient hold on power in Italy was weakening in advance of a crucial parliamentary vote on Tuesday, did little to reassure investors that either country was prepared to grapple with the deep structural changes that investors are demanding to...

HOPES OF a “Greek miracle” calmed investor nerves yesterday, and lifted the Irish index in line with its Continental counterparts. Markets opened down, but they steadied after German chancellor Angela Merkel retreated from demands that bondholders should shoulder a substantial part of the cost of a Greek rescue. Expectations of a “Greek miracle” grew after the chancellor’s meeting with French president Nicolas Sarkozy, and sparked a rally across European markets, a Dublin broker said. Dr Merkel confirmed she would work with the ECB to resolve the Mediterranean nation’s sovereign-debt crisis. “We would like to have a participation of private creditors...