Sunday, June 19, 2011

Eurozone Banks Default ? and UK Banks

Telegraph: Reports that big UK banks have withdraw money from the Eurozone due to the fear that Greece will go down the toilet and take European Banks with them, hence UK Banks would not get their loans back. It starts folks, as the article notes this has happened before, the article states the following, “ …reminiscent of the build-up to the financial crisis in 2008..”, as German and French banks hold the majority of Greek Debt these banks would require a major bailout by their Governments. It can be argued that that the UK banks smell the blood in the water, they don’t want to get bitten by the Great White Shark that is a Greek default. The economic and political elite still don’t get the fact that the Euro could cause another financial crisis, aka 1929, 2008, the debt level is jut off the chart, there is no way Greece can pay back its debt, the adding of more loans will only place a very light plaster on the wound that is Greece, lets be clear Greece has to get out of the Euro, otherwise it will bring down the House of Cards that is the EU. A Greece out of the Euro, could start, afresh, it would have defaulted on its loans, then the EU/IMF could give money that could be paid back over a much longer period, otherwise its just very good money down the toilet. Why do the elite not smell coffee, are they willing to sacrifice the EU over the failed Euro. When you make a mistake you say admit and move on, otherwise you make the same mistakes and never learn.

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