Bring Out Your Dead - UBS Quantifies Costs Of Euro Break Up, Warns Of Collapse Of Banking System And Civil War (dollars, compared)

[nicet4]

Bring Out Your Dead - UBS Quantifies Costs Of Euro Break Up, Warns Of Collapse Of Banking System And Civil War | ZeroHedge

Any time a major bank releases a report saying a given course of action is too costly, too prohibitive, too blonde, or simply too impossible, it is nearly guaranteed that that is precisely the course of action about to be undertaken. Which is why all non-euro skeptics are advised to shield their eyes and look away from the just released report by UBS (of surging 3 Month USD Libor rate fame) titled "Euro Break Up - The Consequences."

Truthfully, if Germany doesn't drop the Euro, they will continually be bailing out the weaker states to keep the Euro viable. They have to get out and the currency will fail when they do. The implications for the world are huge. But if they don't, the Germans will CONTINUOUSLY bail out the Greeces and end up with a weak fiat currency. It will be Zimbabwe like.

It will make the USD look comparatively SAFE!

[EdwardA]

Originally Posted by nicet4

Bring Out Your Dead - UBS Quantifies Costs Of Euro Break Up, Warns Of Collapse Of Banking System And Civil War | ZeroHedge



Truthfully, if Germany doesn't drop the Euro, they will continually be bailing out the weaker states to keep the Euro viable. They have to get out and the currency will fail when they do. The implications for the world are huge. But if they don't, the Germans will CONTINUOUSLY bail out the Greeces and end up with a weak fiat currency. It will be Zimbabwe like.

It will make the USD look comparatively SAFE!

Euro elites seem undaunted by the failure of the euro and are doubling down and want more fiscal unity. So now German tax dollars will be forcefully expropriated from Germany to peripheral states. If the Germans object they will be shouted down as Nazis and cowed into compliance.

http://www.nytimes.com/2011/09/06/bu...-union.html?hp

[nicet4]

Originally Posted by EdwardA

Euro elites seem undaunted by the failure of the euro and are doubling down and want more fiscal unity. So now German tax dollars will be forcefully expropriated from Germany to peripheral states. If the Germans object they will be shouted down as Nazis and cowed into compliance.

http://www.nytimes.com/2011/09/06/bu...-union.html?hp

Can we say Very Hard Recession?

The only reason Germany has done so well is the Euro and their ability to export which is coming to a close.

It is as if you owned a company selling cars and which you do is give every man, woman and child a company issued credit card with a $50,000 limit towards the purchase of your car.

For a while you are going to go great guns, you won't be able to manufacture cars fast enough to get them out the door. Political leaders will extol the virtues of your company telling all others they should be exactly like yours.

But eventually the credit cards become maxed out to the limit, nobody will be buying any more cars and it is then you find out nobody has the jobs or money to pay on, much less repay which is a joke, on their credit cards.

This is gonna be fun to watch.

[lifelongMOgal]

Originally Posted by nicet4

Bring Out Your Dead - UBS Quantifies Costs Of Euro Break Up, Warns Of Collapse Of Banking System And Civil War | ZeroHedge



Truthfully, if Germany doesn't drop the Euro, they will continually be bailing out the weaker states to keep the Euro viable. They have to get out and the currency will fail when they do. The implications for the world are huge. But if they don't, the Germans will CONTINUOUSLY bail out the Greeces and end up with a weak fiat currency. It will be Zimbabwe like.

It will make the USD look comparatively SAFE!

I doubt that. These international banks are teetering dominoes all with over-exposure to US and Euro debt, all short on precious metals compared to their paper debt, and all dominos ready to be tipped by the next world instability/created crisis. It is just a matter of time before those dominos begin to fall. The failure of one will be more difficult to isolate as was Lehman Bros. in 2008. Instead each one has gotten larger and evermoreso "to big to fail" though consolidations and buyouts.

The Feds this week will announce suits against at least a dozen large US banks in re: to the mortgage debacle. How deep is the exposure of UBS, Barclays, etc... to these US banks and what reprecussions will go through the Euro banking system as a result of the next wave of US mega bank failures?

Russian roulette on a global financial scale.

Originally Posted by nicet4

Can we say Very Hard Recession?......

Headed to inflationary Depression. The FED will not be able to hold rates artificially low much longer. Bernake kicked the ball down the road 2 weeks.....time is just about up.