Euro collapsing, Italian politicians brawl on Parliament floor, Germany warns of war

[ThaBigP]

http://hosted.ap.org/dynamic/stories/U/US_DOLLAR?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2011-10-26-11-32-31

http://www.reuters.com/article/2011/10/26/us-italy-fight-idUSTRE79P37V20111026

http://euobserver.com/19/114075



"Nobody should take for granted another 50 years of peace and prosperity in Europe. They are not for granted. That's why I say: If the euro fails, Europe fails," Merkel said, followed by a long applause from all political groups.


I'm so glad our money printing in exchange for Euros via the ECB is "risk free" (I know, because I was told so), else I'd begin to worry...

[erdawiro]

The liquidity swaps are virtually risk free. Right now the we have $1.3B lent in long term 3-month swaps. Unless the Euro becomes completely worthless in 3 months, then we get our money back with interest. Even if the Euro is significantly devalued, we get all of our money back.

Weighing the risk of the full collapse of the world's second largest reserve currency against the risks associated with an impending liquidity crises in the second largest global economy is pretty simple.

[iceberg]

The liquidity swaps are virtually risk free. Right now the we have $1.3B lent in long term 3-month swaps. Unless the Euro becomes completely worthless in 3 months, then we get our money back with interest. Even if the Euro is significantly devalued, we get all of our money back.

Weighing the risk of the full collapse of the world's second largest reserve currency against the risks associated with an impending liquidity crises in the second largest global economy is pretty simple.

jeff - we need you in here... (friend of mine that used to be in banking - trying to get 2-3 more good posters on both views in here now)

[ThaBigP]

The liquidity swaps are virtually risk free. Right now the we have $1.3B lent in long term 3-month swaps. Unless the Euro becomes completely worthless in 3 months, then we get our money back with interest. Even if the Euro is significantly devalued, we get all of our money back.

Weighing the risk of the full collapse of the world's second largest reserve currency against the risks associated with an impending liquidity crises in the second largest global economy is pretty simple.

Well, it's kind of a moot point now anyway ... news is breaking that they've fired up the printing presses and fixed it (http://online.wsj.com/article/BT-CO-20111027-709683.html) ... again. Snoopy dance, everybody! Man do I hate having the taste of my foot in my mouth every time they fix it. They must have done it dozens of times the last three years. You'd think I'd have learned by now that I should move along... there's nothing to see here ... they've got this thing TOTALLY under control. And they certainly wouldn't make the inevitable crunch much worse by their endless rounds of easing. After all, it's the same bunch of brilliance that fixes this thing every few months. In the immortal words of Homer Simpson... "I haven't learned a thing...." *wink*

And somebody with the notion I have, which is obviously the false notion that if we stopped the money printing and bailouts it would be white turtle doves, peace, and prosperity ever after, should never be allowed near the levers of the printing presses. Obviously I'm deluded by the notion that stopping the presses would be an instant, painless fix to all of our economic ills. Because I've said so on many occasions in the forums. Well, OK, I've actually said quite the opposite, but come on ... everybody knows what I really mean ... *wink* *wink* :0)