How can EU be saved?

[freedom]

ECB printing of money to save EU is default, no matter how would you look at it.

whether they would default by inflation or default by dis-inflation, that's their choices.

[corydorus]

When they force lenders to take 50% paycut in Greece, is already default. Euro itself has already DEFAULTED. There is no question about it anymore. Which is why now Italy follow by spain get hit. If you can do the CUT in one ECB country. Why not the rest ?

No one trust heavy indebted ECB nation anymore. Not with my money. The risk is simply too high.
Sovereign bond of ECB countries are no longer Holy Grail to observe. Technically rubbish in my opinion since defaulted.

It would have been better to kickout Greece first follow by 50% force-cut.They did not and probably reasons why.

[Thriftville]

Yeah, defaulting on Italy's debt will have big issue for the EU banking system... the EU & US banks may not wanna write down such huge sum of money.

See attached for the possible scenarios.

[freedom]

it will be even more interesting if US derivative system is triggered to unwind.

[Thriftville]

it will be even more interesting if US derivative system is triggered to unwind.

Yup, can't wait to see the impact of credit default swaps! it's like triggering mountains of time bomb...

[freedom]

credit default swaps is small. more interesting would be like currency swap (between EURO and other currencies), interest rate swap, if EU loses its single currency EURO.

[psolhawk]

Spam!! Hahaha.. (At first, I thought the nick was a play on Aunty Lucy.)

[Muck]

Yeah, defaulting on Italy's debt will have big issue for the EU banking system... the EU & US banks may not wanna write down such huge sum of money.

See attached for the possible scenarios.

Another possible scenario is to boot the Greeks out of the Euro....