Failure to save East Europe will lead to worldwide meltdown

peaceandlove · 02-19-2009, 11:13 AM

Failure to save East Europe will lead to worldwide meltdown

The unfolding debt drama in Russia, Ukraine, and the EU states of Eastern Europe has reached acute danger point.

By Ambrose Evans-Pritchard
Last Updated: 2:05AM GMT 15 Feb 2009

If mishandled by the world policy establishment, this debacle is big enough to shatter the fragile banking systems of Western Europe and set off round two of our financial Götterdämmerung.

Austria's finance minister Josef Pröll made frantic efforts last week to put together a €150bn rescue for the ex-Soviet bloc. Well he might. His banks have lent €230bn to the region, equal to 70pc of Austria's GDP.

"A failure rate of 10pc would lead to the collapse of the Austrian financial sector," reported Der Standard in Vienna. Unfortunately, that is about to happen.

Article continues: http://www.telegraph.co.uk/finance/c...-meltdown.html

02-19-2009, 11:13 AM	#1
peaceandlove Avalon Senior Member Join Date: Sep 2008 Location: Turtle Island Posts: 2,776	Failure to save East Europe will lead to worldwide meltdown Failure to save East Europe will lead to worldwide meltdown The unfolding debt drama in Russia, Ukraine, and the EU states of Eastern Europe has reached acute danger point. By Ambrose Evans-Pritchard Last Updated: 2:05AM GMT 15 Feb 2009 If mishandled by the world policy establishment, this debacle is big enough to shatter the fragile banking systems of Western Europe and set off round two of our financial Götterdämmerung. Austria's finance minister Josef Pröll made frantic efforts last week to put together a €150bn rescue for the ex-Soviet bloc. Well he might. His banks have lent €230bn to the region, equal to 70pc of Austria's GDP. "A failure rate of 10pc would lead to the collapse of the Austrian financial sector," reported Der Standard in Vienna. Unfortunately, that is about to happen. Article continues: http://www.telegraph.co.uk/finance/c...-meltdown.html Last edited by peaceandlove; 02-19-2009 at 11:57 PM.