Germany takes hot seat as Europe falls into the abyss

Dandelion Salad

By Ambrose Evans-Pritchard
Telegraph
Last Updated: 8:37PM BST 06 Oct 2008

We face extreme danger. Unless there is immediate intervention on every front by all the major powers acting in concert, we risk a disintegration of global finance within days. Nobody will be spared, unless they own gold bars.

Investors will learn today whether the Paulson bail-out – fattened to $850bn (£480bn) by Congress – can begin to halt the death spiral in the credit system. So far, the response looks terrible.

Germany is now in the hot seat. The collapse of a rescue deal for Hypo Real Estate on Saturday threatens a €400bn (£311bn) bankruptcy that nearly matches the Lehman Brothers debacle for sheer scale.

[…]

During the past week, we have tipped over the edge, into the middle of the abyss. Systemic collapse is in full train. The Netherlands has just rushed through a second, more sweeping nationalisation of Fortis. Ireland and Greece have had to rescue all their banks. Iceland is facing an Argentine denouement.

The US commercial paper market is closed. It shrank $95bn last week, and has lost $208bn in three weeks. The interbank lending market has seized up. There are almost no bids. It is a ghost market. Healthy companies cannot roll over debt. Some will have to sack staff today to stave off default.

[…]

via Germany takes hot seat as Europe falls into the abyss – Telegraph.

h/t:amnesty4AWOL

see

James K. Galbraith: The Predator State
The End of American Hegemony By Paul Craig Roberts

French Premier Francois Fillon: We’re on “the edge of the abyss” By Mike Whitney

Naomi Wolf: Give Me Liberty – A coup has taken place! (must-see video)

Bill Moyers Journal: Emma Coleman Jordan on the Bailout

Ralph Nader: Commercial Greed Knows No Limits + Obama Will Become A War Criminal!

Russian markets slump to a halt

Glass-Steagall posts

The Economy Sucks and or Collapse