The European economic crisis is far from over. The European Central Bank is calling for greater levels of depositor insurance to help reduce bank runs. Without it, the ECB states, the financial chaos will spread virally.
Worrying about the banks
A lot of European speculators are putting money into Austrian and French bonds that are at a low mark for 10-year yields. The euro has deflated in value against the United States dollar with a two year low at this point because every person is worried. There is a ton of concern that Greece will not survive and that Spain will have a failing banking system.
Spanish banks moved massive amounts of cash abroad in March at a rate faster than has been recorded since record-keeping of such transactions began in 1990, notes the Associated Press. The country's fourth-largest lender, Bankia, reportedly was nationalized in May due to huge losses following a real estate crash. As much as $82 billion in net capital has been lost by Spanish banks in recent months.
No bailout for you
IMF Managing Director Christine Lagarde denied reports that the IMF is getting ready for a Spanish bank bailout to keep Europe's economy from sinking further into the mire.
"There is no such plan. We have not received any request to that effect and we are not doing any work in relation to any financial support," said Lagarde.
At the same time, there is a June 17 Greek general election that will determine the nation's future with regards to the euro zone. The SYRIZA leftists are not winning right now; the New Democracy party is winning, and that party is for bank bailouts. Ireland voters want the European Union to help out a bit, according to the New York Times, which is why it wants the government to approve a referendum.
Check out clarity
According to Mario Draghi, European Central Bank President, nations have to be put in order with the Euro easily by European leaders. Not everyone in the euro zone will get help and economic policy from the ECB.
"We will avoid bank runs from solvent banks. Depositors' money will be protected if we build this European guaranteed deposit fund. This will assure that depositors will be protected," said Draghi.
German Chancellor Angela Merkel is one person who has suggested that Europe should think about options since Germany has been unwilling to support the union with its taxpayers' money in the past. It is the paymaster of the European Union, but the ECB wants a joint deposit guarantee for depositors.
"There are integration steps which will require treaty changes. We are not at that stage today but nevertheless there are no taboos," she said at a news conference.
Financers concerned
The European economic crisis has brought on financiers to be really concerned at this time, according to Draghi. Unfortunately, that must not translate into warning.
"I urge all governments to keep this in mind, because it is better to err by too much in the very beginning rather than by too little," he said, citing the recent failures of Spain's Bankia and the French-Belgian bank Dexia.
Worrying about the banks
A lot of European speculators are putting money into Austrian and French bonds that are at a low mark for 10-year yields. The euro has deflated in value against the United States dollar with a two year low at this point because every person is worried. There is a ton of concern that Greece will not survive and that Spain will have a failing banking system.
Spanish banks moved massive amounts of cash abroad in March at a rate faster than has been recorded since record-keeping of such transactions began in 1990, notes the Associated Press. The country's fourth-largest lender, Bankia, reportedly was nationalized in May due to huge losses following a real estate crash. As much as $82 billion in net capital has been lost by Spanish banks in recent months.
No bailout for you
IMF Managing Director Christine Lagarde denied reports that the IMF is getting ready for a Spanish bank bailout to keep Europe's economy from sinking further into the mire.
"There is no such plan. We have not received any request to that effect and we are not doing any work in relation to any financial support," said Lagarde.
At the same time, there is a June 17 Greek general election that will determine the nation's future with regards to the euro zone. The SYRIZA leftists are not winning right now; the New Democracy party is winning, and that party is for bank bailouts. Ireland voters want the European Union to help out a bit, according to the New York Times, which is why it wants the government to approve a referendum.
Check out clarity
According to Mario Draghi, European Central Bank President, nations have to be put in order with the Euro easily by European leaders. Not everyone in the euro zone will get help and economic policy from the ECB.
"We will avoid bank runs from solvent banks. Depositors' money will be protected if we build this European guaranteed deposit fund. This will assure that depositors will be protected," said Draghi.
German Chancellor Angela Merkel is one person who has suggested that Europe should think about options since Germany has been unwilling to support the union with its taxpayers' money in the past. It is the paymaster of the European Union, but the ECB wants a joint deposit guarantee for depositors.
"There are integration steps which will require treaty changes. We are not at that stage today but nevertheless there are no taboos," she said at a news conference.
Financers concerned
The European economic crisis has brought on financiers to be really concerned at this time, according to Draghi. Unfortunately, that must not translate into warning.
"I urge all governments to keep this in mind, because it is better to err by too much in the very beginning rather than by too little," he said, citing the recent failures of Spain's Bankia and the French-Belgian bank Dexia.
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