Sunday, July 10, 2011

"EU Calls Emergency Meeting on Monday" and "European Rescue Fund Insufficient To Rescue Italy, May Be Doubled To Over $2 Trillion"

First up, Calculated Risk:
European Council President Herman Van Rompuy has called an emergency meeting of ... for Monday morning, reflecting concern that the crisis could spread to Italy, the region's third largest economy....MORE
And from ZeroHedge:
The latest italy contingency stunner comes from Die Welt which has just reported that the European rescue fund will be insufficient to bail out the latest biggest loser in the game of musical ponzi chairs, Italy. As Reuters translates: "The existing rescue fund in Europe is not sufficient to provide a credible defensive wall for Italy," the central bank source was quoted telling the newspaper in an advance text of an article to appear on Monday. "It was never designed for that," the source added." The newspaper said that the rescue fund might have to be doubled to up to 1.5 trillion euros. But it was not clear if it was the central bank source calling for the increase." Doubling the bailout fund is not a new idea and was previously proposed by Nout Wellink of the Dutch Central Bank, although as Die Welt explains, the decision will ultimately be not that of the ECB but of the separate governments....MORE
Credit Anstalt indeed.