It is looking bad for the EU right now and looks to get worse before this month is out. I do hope you folks have been paying attention to what’s going on in respect to the EU as it’s getting mighty sporty. If you can put a few paper dollars under your mattress and get some last minute items and have them in your possession, perhaps pay ahead on utilities, rent/mortgage and get your shopping done I would advise it! Think of it as a test and Jamie is just being panicky/paranoid. If you are like me you have a little cash on hand and plenty of stuff to get by for a month or three of basic goods. Just be aware and if you hear about panic buying and stuff be ready to hunker down and ride out the panic and be ready to pay in cash!
I’m not fearful exactly but if a storm is coming I want to make sure everything is put away, tied down and I know where my candles, radio, lighter/matches and flashlight is at just in case.
I’m not sure if it is hubris in Brussels or a threat to scare the PIIGS into line or what they are trying to accomplish. But it seems to me that they are making the wrong deals and statements across the board if they are trying to stop the Bank runs and panic because it’s now spreading to Vatican City and France. Check out both zerohedge.com and the UK Guardian seems to be following this story closely. The EU banks don’t have enough money to bailout Spain unless the Germans and Northern EU countries pay for the plan. France has gone Socialist hard and dropped to the retirement age to 60 from 62 and basically dared the EU to blink on Austerity and the French Banks are very exposed to Spanish bonds.
Don’t think because it’s the EU it won’t effect you. Most pension and mutual funds have a huge exposure to EU countries bonds and you/the fund at best may get pennies on the dollar if they crash. Think MF Global on steroids or that little JP Morgue hit of 2-6 Billion or more and rising all started in London and the markets they played was in the EU. The ISDA (folks that control the CDS/insurance) have stated that Spain’s meltdown will not trigger a default. So the “insurance ” is no good just like when Greece defaulted and the bond holders got 15 % of the investment funds back.
I’m not a broker, just an amateur learning finance on my own time. But please if you are and are the “EU Markets” take a good hard look at your portfolio and protect yourself. Things look to get messy!