Thread: Morgan Stanley: Imminent European Contagion

Morgan Stanley: Imminent European Contagion

Wednesday, 24 Nov 2010 09:03 AM

Portugal will need a bailout and investors will then focus on Spain as there’s “little to stop the contagionâ€

Pimco’s El-Erian: Ireland Risks Major Run on Banks

http://www.moneynews.com/StreetTalk/Pim ... /id/377951

Thursday, November 25, 2010 2:32 PM

Foreclosed Home Sales in Spain to Triple Next Year; Steve Keen Comments on Foreclosures in Australia

In Spain, where home prices have fallen 22 percent with another 20 percent drop expected, new accounting rules will force banks to make provisions for bad loans after 12 months instead of the 72 months as it sits now.

Rules changes will also require lenders to account for changes in the value of certain assets held longer than two years. As a result of those rule changes, lenders will dump depreciating property assets into an already distressed market.

Please consider Foreclosed Homes for Sale in Spain May Triple in 2011 http://noir.bloomberg.com/apps/news?pid ... VwPTMwc4oY

The number of foreclosed homes for sale in Spain may triple next year as new accounting rules prompt lenders to dump their depreciating assets, according to the co-founder of a website that advertises repossessed properties.

Spanish lenders have a total of 181 billion euros ($242 billion) in “troubledâ€

Global Debt Crisis Implosions, Use Gold and Silver to Protect from The Big One, Coming Soon

Economics / Global Debt Crisis
Nov 25, 2010 - 04:31 AM

By: DeepCaster_LLC

“Attempts to bail out the Irish banking sector via multinational loans will only increase debt burdens in Europe and lead to a nightmarish scenario there, says New York University economist Nouriel Roubini.

There is too much private debt in Ireland, and aid from the International Monetary Fund, the European Union or whoever merely amounts to pushing the payday down the road and ultimately increasing the total amount owed in the end.



"Now you have a bunch of super sovereigns – the IMF, the EU, the eurozone — bailing out these sovereigns," Roubini tells CNBC, adding nobody "from Mars or the moon" will bail out the IMF or the eurozone once Ireland's debt is socialized.

"At some point you need restructuring," he told CNBC. "At some point you need the creditors of the banks to take a hit — otherwise you put all this debt on the balance sheet of government. And then you break the back of government — and then government is insolvent."…

"If Spain falls off the cliff, there is not enough official money in this envelope of European resources to bail out Spain. Spain is too big to fail on one side — and also too big to be bailed out."

“Roubini: Debt Nightmare Unfolding in Europeâ€