European deal today | AccountingWEB

European deal today

Do I have this right?

Leading politicians from across Europe have been thrashing around to hatch a deal overnight.  The point of that deal is that it will avert what threatened to be a spectacular financial collapse of banks and whole countries which could otherwise have come about within days or weeks.

But reaching that deal has done nothing to address the underlying issues which have lead to the risk of that spectacular collapse in the first place.

Please, tell me it's not really as bad as I think!

johnjenkins's picture

It's bad.

johnjenkins | | Permalink

You only have to look around the world to see what is happening. Basically too few have too much and the minions have had enough. The EU are trying to mitigate what is going to be a collapse of capitalism. Good news though we should end up with a workable system that's fair.

memyself-eye's picture

the elephant in the room

memyself-eye | | Permalink

is Greece.

What Sarkozy, Merkel and co have done is persuade the elephant to stop charging around the room by writing off 50% off it's national (not company, individual or housing) debt. To prop up the banks (mostly in France) who hold this debt, France and Germany (but not thankfully, the UK) will guarantee the banks' balance sheets- the ESFS fund - while requiring them to 're-captilaise': ie. lend less and save more.

The elephant meanwhile, is still carrying too many mahoots on it's back, all of them urging it to eat less and crap more. To ensure this happens more mahoots are parachuted in to oversee the process. The elephant is already starving and getting angrier by the day as it now knows it will have to carry all this weight for another nine years.

Smaller elephants looking in from outside the room and also carrying too many mahoots look on enviously at the loss of 50% of their larger brother's burden and clamour "us too".

Because the banks are now lending less and saving more the mahoots that haven't been turfed off the back of the elephant find thay cannot now buy a ladder to get off so, they too starve.

Meanwhile outside paces the oriental Chinese dung beetle, gorged full on 20 years of elephant dung and growing bigger by the day...

As they said in the last days of the Reich:
"Enjoy the war, the peace will be much worse" 





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