Either the Yes Men have infiltrated Italy's biggest, and most undercapitalied, bank, or the stress of constant, repeated lying and prevarication has finally gotten to the very people who know their livelihoods hang by a thread, and the second the great ponzi is unwound their jobs, careers, and entire way of life will be gone. Such as the head of UniCredit global securities Attila Szalay-Berzeviczy, and former Chairman of the Hungarian stock exchange, who has written an unbelievable oped in the Hungarian portal Index.hu which, frankly, make Alessio "BBC Trader" Rastani's provocative speech seem like a bedtime story. Only this time one can't scapegoat Szalay-Berzeviczy "naivete" on inexperience or the desire to gain public prominence. If someone knows the truth, it is the guy at the top of UniCredit, which we expect to promptly trade limit down once we hit print. Among the stunning allegations (stunning in that an actual banker dares to tell the truth) are the following: "the euro is “practically dead” and Europe faces a financial earthquake from a Greek default"... “The euro is beyond rescue”... “The only remaining question is how many days the hopeless rearguard action of European governments and the European Central Bank can keep up Greece’s spirits.”...."A Greek default will trigger an immediate “magnitude 10” earthquake across Europe."..."Holders of Greek government bonds will have to write off their entire investment, the southern European nation will stop paying salaries and pensions and automated teller machines in the country will empty “within minutes.” In other words: welcome to the Apocalypse...
A must-read for anyone who thinks this whole Greek thing will "just blow over"...
Post by Virgil Showlion on Sept 28, 2011 13:56:11 GMT -5
The first stage is the Greek banks collapsing (they hold a vast amount of Greek debt that would be rendered nearly worthless). That would set off an immediate need to shore up more tier 1 capital—hence a liquidity crunch—followed by a bank run as the greater Greek population realizes it's first-come-first-serve for their banks' dwindling reserves.
Post by Virgil Showlion on Sept 28, 2011 14:36:15 GMT -5
From your article:
...the International Monetary Fund (IMF) stepped in to initiate a $40 billion program to stabilize the currencies of South Korea, Thailand, and Indonesia, economies particularly hard hit by the crisis...
The Europeans and Fed have thus far thrown 1.6 trillion Euro at the problem and nada.
We're talking apples and orchards here.
ETA: From your Russian article:
...It is estimated that between 1 October 1997 and 17 August 1998, the Central Bank expended approximately $27 billion of its U.S. dollar reserves to maintain the floating peg.
A couple of thoughts on this. 1. If the Euro tanks, the dollar could soar and become the common European currency. 2. Gold and silver could / would be liquidated into dollars in Europe. 3. The Fed is prepared to support the US banking industry if the Euro fails. 4. U.S. businesses would suffer as the European customers disappear.
Post by Virgil Showlion on Sept 28, 2011 18:10:48 GMT -5
As I was 15 years old at the time, I had other concerns that the Russian stock market.
But will you at least acknowledge that there is two orders of magnitude difference between the crisis then and the crisis now. Acknowledge it and dismiss it as irrelevant if you wish, but an acknowledgement would restore some of my faith in humanity.
"September 29, 1930, for the first time in the history of Pittsburgh Steamship Company, the boats of the fleet loaded more than one million tons in a seven-day period. The 64 Pittsburgh boats loaded 1,002,092 tons of cargo between 9/23 and 9/29. "