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 claims, the financial mayhem will spread virally.
A few banking system concerns
The euro currency has deflated to a two-year low against the United States dollar due to concerns that Greece may not survive and Spain's banking system could collapse. Austrian and French bonds have 10-year yields at their low since the introduction of the euro, but European speculators are putting money in nonetheless.
The AP explained that Spanish banks moved a ton of money in March faster than it has ever been seen since record keeping started in 1990. The fourth-largest bank, Bankia, lost a lot because of a real estate crash, which brought on it to be nationalized. Spanish banks have lost $82 billion in recent months in capital.
No bailout for you
To be able to keep the European economy from getting even worse, there were rumors that there might be a Spanish bank bailout from IMF. This was denied by International Monetary Funding Managing Director Christine Lagarde.
"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.
A referendum in Ireland would make it easier for the European Union to offer aid to Ireland voters, according to the New York Times. There is also an election in Greece on June 17 that will go a long ways towards to euro zone for the nation. Right now, the bank bailout favoring New Democracy party is beating the SYRIZA leftists, which is a good thing for people who want bank bailouts.
Trying to find clarity
The ECB will not write economic policy for the entire euro zone; European leaders have to figure out where the nations stand easily, according to European Central Bank President Mario Draghi.
"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.
No caution required
Draghi testified before European Union lawmakers that the European financial crisis has set financiers across the euro zone on edge, but that warning is not what is required at this time.
"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.
A few banking system concerns
The euro currency has deflated to a two-year low against the United States dollar due to concerns that Greece may not survive and Spain's banking system could collapse. Austrian and French bonds have 10-year yields at their low since the introduction of the euro, but European speculators are putting money in nonetheless.
The AP explained that Spanish banks moved a ton of money in March faster than it has ever been seen since record keeping started in 1990. The fourth-largest bank, Bankia, lost a lot because of a real estate crash, which brought on it to be nationalized. Spanish banks have lost $82 billion in recent months in capital.
No bailout for you
To be able to keep the European economy from getting even worse, there were rumors that there might be a Spanish bank bailout from IMF. This was denied by International Monetary Funding Managing Director Christine Lagarde.
"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.
A referendum in Ireland would make it easier for the European Union to offer aid to Ireland voters, according to the New York Times. There is also an election in Greece on June 17 that will go a long ways towards to euro zone for the nation. Right now, the bank bailout favoring New Democracy party is beating the SYRIZA leftists, which is a good thing for people who want bank bailouts.
Trying to find clarity
The ECB will not write economic policy for the entire euro zone; European leaders have to figure out where the nations stand easily, according to European Central Bank President Mario Draghi.
"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.
No caution required
Draghi testified before European Union lawmakers that the European financial crisis has set financiers across the euro zone on edge, but that warning is not what is required at this time.
"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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