Halligan starts with the UK banks issue and repeats his contention that banks must be made to confess all the over-valued toxic assets they have on their books. At the end he turns his attention to international markets, and concludes
This column has long questioned the eurozone's long-term survival. Now global markets are doing the same. At the start of last year, the average 10-year government bond yield among the weaker member states (Portugal, Greece, Spain, Ireland and Italy) was just 25 basis points above the comparable number in Germany. That spread is now six times bigger.Just next to him, Ambrose writes that monetary union has left half of Europe trapped in depression. And he concludes that
Credit default swaps (the cost of insuring against a government default) among the most feckless eurozone members have reached Latin American levels. Would French and German taxpayers bail out another eurozone member? The longer this crisis goes on, the larger that incendiary question looms.
Traders suspect that investors are dumping their Club Med and Irish debt immediately on the European Central Bank in "repo" actions.It's as if we're watching a speeded up film.
In other words, the ECB is already providing a stealth bail-out for Europe's governments – though secrecy veils all.
An EU debt union is being created, in breach of EU law. Liabilities are being shifted quietly on to German taxpayers. What happens when Germany's hard-working citizens find out?
P.S. Today Ambrose reports that in Ireland "as yet, there is no public support for withdrawal from the euro".