Europe’s Crisis May End in a ‘Violent Blow-Up’: Galbraith

Monday, October 24, 2011
By Paul Martin

Finance.Yahoo.com
10/24/2011

After yet another summit this weekend, European leaders still have not finalized a solution to save Greece from default and recapitalize Eurozone banks.

“Work is going well on the banks,” French President Nicolas Sarkozy told reporters at the Brussels summit yesterday. “On the question of Greece, things are moving along. We’re not there yet.”

Sunday’s meeting marks the 13th summit by European leaders in less than two years, and now all eyes are on the next, scheduled for Wednesday, where EU leaders have vowed to present their plan to solve Europe’s sovereign debt crisis and reassure global markets contagion will be averted.

So what are the big takeaways from Sunday’s meeting? There are six things of note, according to Goldman Sachs’ director of macro and markets research Francesco Garzarelli and chief European economist Huw Pill, via Business Insider:

1 – A “Crew Cut” for Greece: Basically, due to deteriorating fundamentals, it’s not certain that big haircuts for bondholders are an inevitability.

2 – A larger bank re-cap: The number is now up to 100-110 billion EUR.

The Rest…HERE

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