Bank Bailouts - Economic Crisis

Guardian: Reports that the MD of the IMF, former French Finance Minister Christine Lagarde has “ ..urged Europe's leaders to bail out their fragile banks.. ”. This will be a tough sell for EU leaders folks, a 2nd bailout would be a political nightmare, if UK Banks needed a bailout there would be demos on the streets, how much grief can banks expect to get away with after the 1st bailout. One can postulate that the Coalition Government would have a hard time getting a bailout through the House of Commons. When it comes to the banks folks it’s the unknowns, how much debt do the banks themselves not know they have on their books. Grim times ahead folks.

Cameron on Economic Woes - Economic Crisis

Telegraph: Reports that Coalition PM David Cameron has in essence rebuked President Obama and EU leaders for allowing out of control Government deficits. The problem is folks is that Obama is in re-election mode, thus is worried about this left wing Democratic base, thus his attack the rich rhetoric, the EU leaders have glued themselves to the Euro and Greece at the expense of economic reality. It depends when real economic reality forces these leaders to see the real world, politicians and the real world is not something that is easy for the elite of the Western world folks. In the Obama case taxing the rich always ends up taxing the middle class, it’s the nature of policy development, the welfare states always needs more money. In the EU, the Euro has become a policy of blind faith at the expense of the voters and democracy, this constant drip of economic woe has to have an end point, something big has go down, either a bank or a country, then the politicians will have to act, it will be to late but they will act, that is the nature of politics folks.

Downfall of the Markets

BBC News: Reports on the tanking of Shares Markets in the US, UK and the EU. Thus folks in many respects we have a perfect storm, the US is broke, it has 14 trillion debt and the future economic and political prospects do not look good, the UK has seen its growth forecast downgraded to 1.1%, also in August the Coalition Government borrowed nearly 16 billion to fund the government, in the EU we have Greece, which is broke and is an economic zombie, eating cash with no future, in the European Central Banks is keeping Italy and Spain afloat. Thus answer folks, it goes back to Greece, as long as Greece is kept on life support it will suck the life out of the Euro and the EU. The Greeks have to be cut off, they are infected, after they default give them loans, but no more Euro bailouts. Then for Italy and Spain, a major bailout, even the UK would have to put some money in, also a trillion fund for the banks who will fold if Greece hit’s the deck. In the US the voters have to wait for November 2012 for a clear path forwards, its long but that the Democratic timeline folks. In the meantime, buy gold and keep you money in the bed, those banks are risky folks, still worried what the banks are not telling their governments and the public.