Mauldin overview of Europe's problems -- a great read!

Long overview from http://www.johnmauldin.com/frontlinethoughts/where-is-the-ecb-printing-press that's worth reading.

Where Can I Find €3 Trillion?

First, for the record, the European issue is not a crisis of confidence, as Merkel and Sarkozy, et al., keep telling us. It is structural. And until the structural issues are dealt with, the problems will not be solved.

1000 words (part 5)

NYT Overview of the Euro Crisis

http://www.nytimes.com/interactive/2011/10/23/sunday-review/an-overview-of-the-euro-crisis.html

"The European Financial Crisis in One Graphic: The Dominoes of Debt "

http://www.oftwominds.com/blogoct11/euro-debt-dominoes10-11.html  from Charles Hugh Smith's Of Two Minds blog

Economist -- nice overview

Excellent article -- worth a full read (it's not that long, even!)

last paragraph: In 2008 governments were credible backstops for their banks and the Fed, the central bank at the heart of the crisis, was willing to do everything it could to create confidence. Now the sovereigns are the problem and the ECB’s help is limited and conditional. That is the real horror film.

http://www.economist.com/node/21531467?fsrc=nlw|edh|09-29-11|editors_highlights

Robert Reich blog post

Follow the Money: Behind Europe’s Debt Crisis Lurks Another Giant Bailout of Wall Street

TUESDAY, OCTOBER 4, 2011

Today Ben Bernanke added his voice to those who are worried about Europe’s debt crisis.

But why exactly should America be so concerned? Yes, we export to Europe – but those exports aren’t going to dry up. And in any event, they’re tiny compared to the size of the U.S. economy.

If you want the real reason, follow the money. A Greek (or Irish or Spanish or Italian or Portugese) default would have roughly the same effect on our financial system as the implosion of Lehman Brothers in 2008.

Financial chaos.

Prophets Of Doom: 12 Shocking Quotes + 1 I found

12 below, but here's another:  "The markets are focused on the imminent default by Greece. But, this is not the most important issue now. The historic development the markets have not priced in as that Germany is preparing to exit the Euro. The markets are very likely to have to contend with the re-introduction of Deutsche Marks in the near future. This is bound to mean a collapse in the value of the Euro for those countries that will remain in it (devaluation for the rest of Europe). This step may seem unthinkable but, I believe that the German government is telling us in multiple ways that there is no other solution from their point of view."
-- This is from Pippa Malmgren -- smart enough that she worked for the Bush White House (her bio)

From The Economic Collapse Blog (nice title) & reposted by zerohedge

The following are 12 shocking quotes from insiders that are warning about the horrific economic crisis that is almost here....

#1 George Soros: "Financial markets are driving the world towards another Great Depression with incalculable political consequences. The authorities, particularly in Europe, have lost control of the situation."

#2 PIMCO CEO Mohammed El-Erian: "These are all signs of an institutional run on French banks. If it persists, the banks would have no choice but to delever their balance sheets in a very drastic and disorderly fashion. Retail depositors would get edgy and be tempted to follow trading and institutional clients through the exit doors. Europe would thus be thrown into a full-blown banking crisis that aggravates the sovereign debt trap, renders certain another economic recession, and significantly worsens the outlook for the global economy."

Truth & rumors

Dutch Finance Ministry Says Greek Default Is Unavoidable, Immediately Retracts

Moody’s has downgraded French banks Société Générale andCrédit Agricole, citing their exposure to Greek debt.

China Premier Wen Jiabao Dampens Speculation on China Saving Europe with Statement "Debt-Laden Economies Must First Put Their Own Houses in Order"

Serious recession threat for U.S.

When do you expect the economic growth to rebound and stabilise?
The slowdown pressure will definitely remain till December across the spectrum. There can only be a rebound early next year but that will largely depend on the policy decisions the large economies take in the next few weeks.

The problem is this slowdown is happening within couple of years of huge recession and the world has not recovered fully from the 2008 crisis.

And, the ECRI Weekly Leading Index from last week: WLI Ticks Up, but Growth Weakens

Europe -- CDS and yields

PIIGS credit default swap info, from MarketTicker: "CDS spreads on the PIIGS (composite), ...is up an astounding 60% today"

And from Mish, bond yields:
"On a spread-basis, the only country whose yields have collapsed is Ireland.
Italy, Belgium, France and Spain are at or close to spread highs. Also note how France is creeping up.
On 1-year spreads, Italy, Spain, and Belgium are at new highs, suggesting the ECB is losing the containment war on Italian bond yields."

Yield Curves -- Germany going to recession (or just bailout business?)

From Wall Street Transcript, via yahoo (my bolding):


Edward M. Dempsey: The German yield curve is beginning to invert. Yield curves should be positively sloped if all is well since it reflects healthy demand for money. When you get an inverted yield curve, it is a very reliable harbinger of a coming recession. It reflects concerns of an economic slowdown and deflationary period. So now you can have a scenario where if Germany enters recession, and given that Germany is the strongest link in the euro chain, what happens to Greece, Italy, Spain and Portugal? In that kind of a scenario, German public support for the euro can very, very quickly evaporate. Everyone is worried about Greece being kicked out of the euro, but what if you wake up and Germany says, "We are out of the euro"? I don't believe that is outside the realm of possibility.


Image from mish:

Interactive Chart from financial times:

Europe -- The Final Countdown

20 Quotes From European Leaders That Prove That They Know That The Financial System In Europe Is Doomed

Mish has a good post about the good times in Europe right now

Not only that, but it's messing up the U.S. markets:  From zerohedge:

Gold.  From kitco.com:

check out this for euro/us gold play

Greece, Portugal / Germany, France

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