Wednesday, February 11, 2009

European bank bail-out could push EU into crisis



It is now estimated that European banks have $23 trillion in bad loans. How far is our Fed prepared to go to support them?

The euro is facing a crisis. If you are not short this currency do yourself a favor and open a forex account somewhere and start building a short position. This could make England's move out of the ERM back in 1992 look like a hiccup in comparison.

Read story here.

2 comments:

googleheim said...

Has the USA finally come about with a figure on USA total amount of bad loans ?

Mike Norman said...

Irrelevant. Apples and oranges. There is no risk of a payments crisis developing in the U.S. or in any country that issues its own currency and where that currency is non-convertible. Not the same for EU member states that use the euro.