Search This Site:

Monday, 19 December 2011

Comprehensive Euro solution beyond reach - Fitch

"Fitch has concluded that a 'comprehensive solution' to the eurozone crisis is technically and politically beyond reach". 

The Fitch Ratings agency expressed concerns over the absence of any credible financial backstop.  Fitch is concerned that the ECB's commitment to provide liquidity during a liquidity crisis is not active and explicit enough.  Click "Fitch casts doubt on European plans to stop crisis" to read the full AFP article, whom I acknowledge.

The next of many possible scenarios to consider are:  that Germany leaves the Eurozone, damaging German exports to devalued Euro currency nations;  or Greece leaves the Eurozone, threatening French and other banks exposed to Greek debt.  But there are more possible outcomes than can be enumerated.  See also: "Beating a path to a Euro break-up";  "Draghi warns on eurozone break-up";  and "ECB's Stark discusses resignation", the latter of which describes how the core of the Eurozone conflict is agreement upon the purpose of the ECB.

Click here to join our free live stock market briefings.