Euro is DOA

Hey Harlem dudes,

 And then you had to spoil it all, but saying something stupid- Save the Euro!
(Frank Sinatra or spoof, Something Stupid)


The Euro is not going to make it, and you could call the Euro and the Euro financial system, DOA, that  is dead on arrival.

The Italian government and the European Commission have activated crisis units to face an expected panic sale on Monday, July 23.
Yesterday, Italian and Spanish bond and stock markets plunged, and the spread went back at record height. Spanish 10-year bond yields rose to 7.284% yesterday, and Italian yields climbed above the 6% mark. The stock markets plunged 4.7% in Spain and 4.4% in Italy.
The Italian government has cancelled a bond auction scheduled for Aug. 14, but at the end of the month about EU31 billion must be somehow refinanced. Projections say that at current rates, Italy shall pay an additional EU15 billions on debt service by 2015 (almost EU100 billions in total).
Government sources speak of "those damned 50 days" from now to the expected ruling of the German Constitutional Court on Sept. 12, according to La Repubblica.
The fact is, that even if the Court rules in favor of the ESM, the euro is doomed anyway. Life for the ESM is now complicated by the fact that the left arm of the EU is sabotaging the right arm.
Eurostat is now demanding that the ESM clarify uncertainties as to who pays the final bill. Should Spanish banks bailed out by the ESM go bankrupt, Eurostat says that it must be clear whether the EU100 billion shall be paid by Spain or by ESM shareholders (the ESM member countries). Since it is clear that a bailed-out country cannot pay the bill, this is going to create more opposition among the public, such as in Germany.
Nevertheless, it is feared that puppet Italian Prime Minister Mario-netta Monti will use the pretext of the speculative attack to carry out another ambush against Italian taxpayers. Rumors circulate that the government might impose a tax on personal property which might reach EU250 billion. Monti gave a press conference yesterday and attacked a newspaper which had indirectly compared him with Mussolini. The ESM will condemn us to a "Ventennio"—20 years, usually a reference to Mussolini's Fascist dictatorship—the newspaper had written

Spain, and the Insane Banks

The banks are still going down despite the NY Times talk that Spain is all right.

FRANKFURT — With an agreement to bail out Spain’s struggling banks, Europe again avoided financial chaos in a debt crisis that is in its third year. But Europe still faces far bigger challenges that threaten the Continent and with it, the world economy.

The most urgent of those concerns is being driven by events in a country at the other edge of the euro zone: Greece.

While the Spanish banking rescue will be expensive — as much as $125 billion — it will be well within the means of a European emergency fund established for just such purposes. 

What BS!!!!  The Spanish debt hole is about $1 trillion.  Time for Glass-Steagall Act 1933 USA type legislation.  We need a bankruptcy reorganization.