The original February 11 story was a shocker. The author claims to have seen a secret European Commission report. The report estimates that losses (write-downs) by European banks will be in the range of $25 trillion.

If true, then to save the banking system, European governments will have to find an extra $25 trillion, fast. There is only one source of such funding: the central banks, mainly the European Central Bank (ECB).


gratefulal at 09:56 2009-02-21 said:
What he is basically saying is that Europe is a giant Iceland with a slightly longer fuze.

If that's true then we all need to brace ourselves. Permalink

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