I'm surprised no one has posted about it. I heard on the radio this morning that yesterday it was announced that the European banking system was determined to be insolvent. I expected to find something on here when I logged in, so I haven't researched it.

NOT a good time for our country to be $15T in debt and spending tons of borrowed money. That's for sure!

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Annoy a Liberal, Read the Constitution

I am surprised as well that you still here.....but you know.... we have to live with it, not for long I hope.

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My gosh pav! I was merely trying to hear some details about what I heard on the radio.

All the best

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2014 Porsche Cayenne six speed manual

Annoy a Liberal, Read the Constitution

It wasn't "announced". Who "announces" stuff like that anyhow? Is there some over-arching uber agency that decides the solvency or insolvency of banks worldwide? The World Announcing Board? The International Making Pronouncements Bureau?
Whenever you hear or read "it was announced" your first question ought to be "announced by whom, under what authority?"
All I can find is some guy named Platt who's some big deal director or honcho of some big deal jillion dollar hedge fund who says he thinks the euro-banks are insolvent.

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It doesn't make sense. There isn't a centralized European currency system so there aren't 'European Banks', there are just Spanish banks, French banks, German banks etc. That's precisely the problem. Since Spain has no direct control over the value of its currency, and it's having economic hard times, it can't devalue it's currency so is paying out high interest in government bonds to fund its deficits.

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Thanks Kerry. I didn't understand what they meant by the European Banking "System" either. There must be SOME common denominator though because of the Euro Dollar. I am at my Mom's with a few extra minutes, without time to look into it. I'm looking forward to seeing what tomorrows Business pages say about it.

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2014 Porsche Cayenne six speed manual

Annoy a Liberal, Read the Constitution

Richard Quest, on CNN, said he took exception to people calling the European situation a 'Political Circus' since a Circus always has a net to catch performers when they fall.

When countries are free to make their own banking laws but they are all tied to a common currency a bad decision by one country makes it rough for all the others in the group. The US has the Dollar, England has the Pound and both countries are free to deal with their situations without being concerned that Mexico or Iceland is going to do something that will cause a banking crisis in their countries.

US business will be effected by troubles in Europe since they are one of our customers and you can't make money if your customers are all broke. But the US also has other customers, and back in the days when I was just getting started in the world the place I worked at had a number of customers, too.

When one customer had bad credit they were put on COD and we focused on our other customers. American business are going to have to learn to do the same with Europe until it gets its' house in order.

Thanks for the post relative to the subject at hand pooka. It'a a great overview.

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2014 Porsche Cayenne six speed manual

Annoy a Liberal, Read the Constitution

The EU monetary system has been like "the Empouror in his new clothes" for some time. A similar thing could be said for any country spending well beyond its means.
As others have commented, a single currency without a single central bank is doomed to failure.
Like in many parts of the world, there are a lot of EU moms & dads hurting badly because of very poor government decisions.

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1967 230-6 auto parts car. rust bucket.
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I guess we could all follow this concept & find a big sand heap to stick our heads in.

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Grumpy Old Diesel Owners Club group

I no longer question authority, I annoy authority. More effect, less effort....

1967 230-6 auto parts car. rust bucket.
1980 300D now parts car 800k miles
1984 300D 500k miles
1987 250td 160k miles English import
2001 jeep turbo diesel 130k miles
1998 jeep tdi ~ followed me home. Needs a turbo.
1968 Ford F750 truck. 6-354 diesel conversion.
Other toys ~J.D.,Cat & GM ~ mainly earth moving

Exactly, which is evidence of a lack of foresight withing the EU community. Good summary

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Past: 135i, GTI, 300E, 300SD, 300SD, Stealth

I thought they all have the Euro which is valued on the whole of the European states and valued accordingly, right?

I think this is a correct statement, but the banking system is related to that only in the value of the Euro that is used in their accounting.

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2014 Porsche Cayenne six speed manual

Annoy a Liberal, Read the Constitution

The Euro as a currency is with the same value, the issue is that in every country the GDP is different depending on many different things, not to mention that the labour laws, working laws, banks laws are country specific NOT Europe specific. So what you have is one currency and many different cultures with different approach, customs etc. This system was designed to fail from the start. In the beginning the Germans were buying cars from Italy because the same let say Mercedes was 30% cheaper in Italy than in Germany. You can't have different minimum pay, different cost of living and expect all the country to develop the same way. This is just plain stupid. When they changed the Italian lira to Euro effectively we lost about 30% of our net over night. Ever since then Italy is with negative balance. This was the worst thing that happen to my motherland...after this idiot Berlusconi of course.

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