Europe’s banks get ready for collapse of the Euro.

Sunday, December 25, 2011
By Paul Martin

Banks are gearing up for the €-emergency

Spiegel.de
25/12/2011

Finance Minister Schäuble promises, the Euro-2012 crisis was over – but some banks view the apparently different. According to “Wall Street Journal,” they are preparing for the worst: the re-introduction of national currencies in Europe.

Berlin – It was a turbulent year. For the crisis-Chancellor, for Europe. Now it appears that the debt crisis to have calmed down around the holidays. The stock markets are closed, most companies pause. Finance Minister Wolfgang Schaeuble sprayed even downright optimism – the financial markets would calm down in the coming years, the CDU politician predicted in the “Bild am Sonntag”. It would indeed “be surprises and excitement, but we are able to manage the” yet.

But is that really so? Not all of the optimism is shared. Above all, a country is in focus: Italy. According to estimates by German Bank chief economist Thomas Mayer decided in the coming year there will be about the future of the euro. At the beginning of 2012 Italy would fall into a deep recession. “If we succeed in the country, because to get out before the elections in May 2013 again – what I expect -. And then Italy may be a role model for all southern states will fall apart otherwise the Euro-zone,” he told the “Frankfurter Allgemeine Zeitung” .
Greeks for long, it looks very bleak. A departure from the common currency of the country was no longer taboo, Mayer believes. There was a risk that there come after the 2012 elections planned a government that is either unwilling or unable to carry on the austerity program, the chief economist analyzed.

In this situation, the financial houses are now preparing to appear before the worst case. Openly talk about it like a bank manager, but behind closed doors to ask a lot of the question: What happens if the currency union actually break apart? If individual countries from the Euro-zone retire their old national currencies and adopt again?

Two banks feel that one now

The Rest…HERE

Leave a Reply