Posted by: Dark Defender | September 27, 2008

Major European bank to be first contagion victim?

As I warned earlier. It seems the major Euro bank Fortis (half of all Belgians bank there, 20th largest business in the world etc) is apparently near failure. Worse it appears that even the massive bailout  would be inadequateto save it.  For the record I think Kristols plan is much more reasonable than the Paulson plan.  Using existing institutions to fulfill commitments the government has already made is a very different animal than a 700bn bailout.  And yes, I realize the money market guarantee is new, but it seems a genuine emergency measure, rather than a a power grab by Washington as the bailout appeared (at least the last time we got a real view of it).

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Responses

  1. wow, so it is global too, not just in the US. it seems its going to get much better before it gets worse.

    http://jwojdylo.wordpress.com

  2. It’ll be interesting to see how Europe reacts to this. The mechanisms simply aren’t there… At least not like in the states.
    In any case, near failure and failure are two different things… so let’s see how this turns out…


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