{"id":566605,"date":"2010-05-17T10:18:05","date_gmt":"2010-05-17T14:18:05","guid":{"rendered":"http:\/\/www.prisonplanet.com\/?p=43114"},"modified":"2010-05-17T10:18:05","modified_gmt":"2010-05-17T14:18:05","slug":"forget-the-wolf-pack-%e2%80%93-the-ongoing-euro-crisis-was-caused-by-emu","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/566605","title":{"rendered":"Forget the wolf pack \u2013 the ongoing euro crisis was caused by EMU"},"content":{"rendered":"

Via Prison Planet.com \u00bb Commentary<\/p>\n

Ambrose Evans-Pritchard
\nLondon Telegraph<\/a>
\nMay 17, 2010<\/p>\n

Jean-Claude Trichet tells us the world faced a second Lehman crash in the days and hours before EU leaders launched their \u20ac720bn (\u00a3612bn) defence fund. If the European Central Bank\u2019s president is correct, we are in trouble. The EU-IMF package is already unravelling. What will the West do for its next trick?<\/p>\n

Mr Trichet was ash-white at the Brussels summit a week ago. He distributed charts of credit stress to every eurozone leader. By the time he had finished his hair-raising discourse, everybody round the table finally understood what they faced.<\/p>\n

\u201cThe markets had ceased to function,\u201d he told Der Spiegel<\/em>. \u201cThere is still a risk of contagion. It can happen extremely fast, sometimes within hours.\u201d<\/p>\n

The spreads on Greek, Iberian, and Irish bonds have, of course, dropped since the ECB stepped in with direct purchases. But the euro rally fizzled fast, to be followed by a fresh plunge to a 18-month low of $1.24 against the dollar. European bank stocks have buckled again. Spain\u2019s IBEX index fell 6.6pc in capitulation fever on Friday.<\/p>\n

Geneva professor Charles Wyplosz said EU leaders made the error of overselling up their \u201cshock and awe\u201d package before establishing any political mechanism to mobilise such sums. \u201cThe fund is an empty shell,\u201d he wrote at Vox EU. \u201cWorse still, crucial principles have been sacrificed for the sake of unconvincing announcements.\u201d<\/p>\n

Full article here<\/a><\/strong><\/p>\n

\"Forget<\/a><\/p>\n

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