Is It Too Late To Stop A European Debt Collapse? And Why You Care

Portugal, Ireland, Italy, Greece and Spain (PIIGS) are struggling mightily to pay their bills and are funding themselves now in part by borrowing huge sums of money through banks, by selling them what are called "Sovereign Bonds." To get that money, those banks in turn are borrowing massive sums from The European Central Bank (ECB). Currently, over 800 banks have such ECB borrowings.

The problem with the PIIGS is their national debts are so great and growing, that the ECB doesn't nearly have the money to cover those debts. This means those countries face financial collapse. To avoid such a collapse, which given the extensive ties between nations and banks will trigger a domino effect, I propose they acknowledge the seriousness of the situation and appeal for a global bailout. This dire situation can still be solved now if we as people and as nations all over the world are given a chance to help.

If you don't live in Europe, why should you care? Already the effect of the deeply troubled Euro Zone is being felt in the U.S., China and elsewhere, as the Euro nations cut back on their imports of goods. And I believe the U.S. Fed is quietly injecting billions of dollars into vulnerable giant banks and perhaps the ECB as well in an attempt to stem this debt crisis, which means Americans have a huge vested interest in what happens to the Euro Zone. If we as brethren across the globe unite, we can solve this crisis, but we need to act now, and act aggressively and with compassion and candor.

Dick
To learn more about the current European economic crisis, please see "Europe's Rescue Plan Falters: Banks in Troubled Countries Close to Exhausting Money Injected to Ease Crisis." The Wall Street Journal http://online.wsj.com/article/SB10001424052702304331204577352031520413246.html?mod=googlenews_wsj

To learn more about the impact the Euro Crisis is already beginning to have in the U.S. please see "Rising Fears That Recovery May Once More Be Faltering," The New York Times

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