Dinar Daily
Welcome to Dinar Daily Discussions.

Logging in with your USERNAME allows you to participate in discussions, see what has recently been posted, and other options. Guests can post but they do have limited abilities.

We are NOT a guru forum. We are a dinarian forum. The opinions expressed on the forum do not reflect the of opinion of Dinar Daily specifically, but rather reflect the views of the individual posters only.


We are in compliance with, "Copyright Disclaimer Under Section 107 of the Copyright Act 1976, allowance is made for "fair use" for purposes such as criticism, comment, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. Non-profit, educational or personal use tips the balance in favor of fair use."

Join Us for Dinar Discussions and More -- We Keep it REAL
HomeSearchMemberlistFAQLog inRegister
Help Us Drain the SWAMP in DINARLAND

REPORT TONY RENFROW for violating his Court Order to stay away from Dinar -

Judge's email: ksd_murguia_chambers@ksd.uscourts.gov
PHONE - 913-735-2340

DA's email: Scott.Rask@usdoj.gov
PHONE - 913-551-6730

Key Words
Adam Montana, AdminBill, Benjamin Fulford, Currency Exchange, David Schmidt, Dinar, Dinar Guru, Dinar Recaps, Dinar Rv, Dinar Scam, Dr Clarke, Frank26, Gary Larrabee, Gurus, Guru Hunters, JerzyBabkowski, Kaperoni, Kenny, Monetary Reform, Mnt Goat, My Ladies, Okie, Poppy, RamblerNash, Ray Renfrow, Redenomination, Revaluation, Ssmith, TNTBS, Tnt Tony, WING IT, We Are The People, Willis Clark, WSOMN, Yosef, Zap
Share | 

  EU leaders meet on debt crisis, hope for Wednesday deal

Go down 
VIP NewsHound
VIP NewsHound

Posts : 1645
Join date : 2011-08-09

PostSubject: EU leaders meet on debt crisis, hope for Wednesday deal   Sat Oct 22, 2011 9:51 pm

BRUSSELS, Oct 23 (Reuters) - European Union leaders hold talks on Sunday to try to hammer out a comprehensive plan for tackling the euro zone debt crisis, but a breakthrough is not expected until another summit on Wednesday.
'We have to take far-reaching decisions. These have to be prepared properly, I believe that the finance ministers made progress, so that we can achieve our ambitious targets by Wednesday,' German Chancellor Angela Merkel told reporters.

'The breakthrough ... will be on Wednesday,' Merkel said before meeting French President Nicolas Sarkozy and other leaders in a castle outside Brussels on Saturday.

Sarkozy, who earlier in the week sharply disagreed with Merkel over strategy, also said he hoped for a breakthrough in the middle of the week.

'Between now and Wednesday a solution must be found, a structural solution, an ambitious solution, a definitive solution,' Sarkozy said. 'There's no other choice.'

Asked whether he was confident of a deal, he replied: 'Yes, otherwise I wouldn't be here.'

To end the debt crisis that first hit Greece, euro zone countries want to tackle several issues in one go and prevent contagion spreading to Spain and Italy, whose public finances are under market scrutiny and whose borrowing costs have risen sharply.

Markets are concerned that Greek debt, forecast to reach 160 percent of GDP this year, will have to be restructured, but investors do not know what kind of damage they will have to take on their Greek portfolios.

The size of the losses private bond holders would have to suffer is the first key issue that will be discussed on Sunday, but will have to wait until Wednesday for resolution.

A Greek debt sustainability study by international lenders showed that only losses of 50-60 percent for the private sector would make Greek debt sustainable in the long term.

This is much more than a 21 percent net present value loss agreed with investors on July 21. Euro zone officials now argue the recession in Greece is much deeper than expected, the country is behind on privatisation and fiscal targets and market conditions have deteriorated in the past three months.

A revision of the Greek deal from July could further depress market sentiment towards euro zone investments in general, and especially towards countries with high debt and slow growth like Italy.

To have enough money to support Italy and Spain, if needed, the euro zone wants to boost the firepower of its bailout fund, the 440 billion-euro European Financial Stability Facility.

But public opinion in many countries is already strongly against more bailouts, and further commitments to the EFSF could drag down some countries' credit ratings, worsening the crisis.

How to raise the potential of the fund without new cash is a second key contentious point to be discussed on Sunday, but not expected to be resolved until Wednesday.

France and several other countries would like the bailout fund to be turned into a bank so that it can get access to limitless financing from the European Central Bank. But Germany and the ECB itself are adamantly against it.

The most likely solution now seems to be that the EFSF would guarantee a percentage of new borrowing of Spain and Italy in a bid to improve market sentiment towards those countries.

Such a solution might help ring-fence Greece, Ireland and Portugal -- the three countries already cut off from the market and using euro zone emergency loans.

The other measure on the summit agenda is the recapitalisation of Europe's banks, many of which hold large portfolios of Greek, Portuguese, Irish, Spanish and Italian debt.

Unless they get more capital to cover potential losses on these bonds, other banks will be reluctant to lend to them on the interbank market, triggering a liquidity crunch, now prevented only by stepped-up ECB liquidity provisions.

The European Banking Authority told European Union finance ministers on Saturday that if all such bank assets were valued at market prices, EU banks would need 100-110 billion euros of new capital to have a 9 percent core tier 1 capital ratio, an EU source familiar with the discussions said.

After their meeting on Saturday, the ministers agreed to give banks until June 2012 to achieve this capital ratio, first using their own funds or from private investors, and if that fails, by using public money from governments or the EFSF.

Bank recapitalisation will be discussed by EU leaders on Sunday, but the EU source said it was unlikely an overall sum for recapitalisation of EU banks would be explicitly mentioned.

(Reporting by Jan Strupczewski; Editing by Andrew Roche) Keywords: SUBBED EU SUMMIT/

(jan.strupczewski@thomsonreuters.com)(+32 2 287 68 37)(Reuters Messaging: jan.strupczewski.reuters.com@reuters.net)
Back to top Go down
View user profile
Elite Member
Elite Member

Posts : 4668
Join date : 2011-06-21
Age : 35
Location : Planet far far away

PostSubject: Re: EU leaders meet on debt crisis, hope for Wednesday deal   Sat Oct 22, 2011 9:58 pm

Watched Money In Motion on CNBC last night, they brought this up and said if the world markets don't like what they IMF,WB, EU, ect......come up with, Thursday and Friday could be bloodbaths on the worlds markets.

Being defeated is often a temporary condition. Giving up is what makes it permanent.
Marilyn Vos Savant

Yesterday would have been better, but today is a good day

Remember as always, JMHO
Rantings from just north of sixty

Last edited by 1alaskan on Sat Oct 22, 2011 9:59 pm; edited 1 time in total (Reason for editing : spelling)
Back to top Go down
View user profile
Active Member
Active Member

Posts : 58
Join date : 2011-07-18

PostSubject: Re: EU leaders meet on debt crisis, hope for Wednesday deal   Sun Oct 23, 2011 9:01 am

This paragraph from the above article is interesting:

"How to raise the potential of the fund without new cash is a second key contentious point to be discussed on Sunday, but not expected to be resolved until Wednesday."

Back to top Go down
View user profile

PostSubject: Re: EU leaders meet on debt crisis, hope for Wednesday deal   Sun Oct 23, 2011 10:03 am

Go rv!!!
Back to top Go down
EU leaders meet on debt crisis, hope for Wednesday deal
Back to top 
Page 1 of 1

Permissions in this forum:You cannot reply to topics in this forum
Jump to: