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European Union Said To Prepare Start Of ESM For July 9


Parsad
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The $620B European Stability Mechanism fund is said to be ready by the end of the month or so.  They've got about $860B between this fund and the EFSF fund, but they probably need another $300-500B to calm markets.  They need to raise that money.  Cheers!

 

http://www.bloomberg.com/news/2012-06-01/eu-said-to-prepare-start-of-permanent-bailout-fund-for-july-9.html

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you think IMF will chip in?

 

They need whoever can to chip in...the U.S. is not going to.  The more money Europe can throw at it, the calmer markets will be and the less the outflows of deposits and capital.  If you stem the outflow of capital, then they've got a shot at making it work if they start to come to terms with changing the way the Union is structured. 

 

But the structure won't matter if capital keeps leaving, because it creates a negative loop which takes down the tax base, employment, lending, consumer spending, everything.  Stop the outflow by bringing in confidence, and then you implement the measures needed to create an equitable deleveraging within the system.  Will not be easy.  Cheers! 

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