The world’s premier euroskeptic, Nigel Farage, just held a funeral procession for the Euro after Europe now has just 10 days left in which to save its battered currency.
ND at the rate Europe is imploding, Nigel won’t have long to wait to get confirmation that all his concerns about the flawed European experiment were not only grounded but outright optimistic.
And yet Europe, caught up in its own historic ponzi, refuses to do the right thing which is to impair banks with a 50%+ haircut, and instead will kick the can down the road, in the process destroying any residual liquidation value of hundreds of trillions of impaired assets, which as has been pointed out on numerous times before, are concurrently the liabilities of other banking institutions, therby making the entire central banking plan of debt inflation pointless.
Farrage summarizes this best: “European banks are going to take a hit at some point anyway, if you are a bank owed a great deal of money it’s better to get 50% of it than none of it. Down the path we are going now is heading for a total bust.”
Probably a good analogy is that if Bernie Madoff was stopped in the 80s or ever 90s, much of his capital would have been recovered.
Alas, waiting until he himself cried uncle, guaranteed no recoveries for anyone. It is sad that Europe, and the entire “developed world” has decided to pursue this path.