Europe Is Cracking

The EUReferendum has a few words about the status of the Euro.

...Merkel is now admitting - that the trillion-dollar stabilisation package that the "colleagues" cobbled together last week merely "buys time". It solves nothing in the medium to long-term and, in fact, its beneficial effect may not last even weeks. Serious commentators are now quite openly talking about the collapse of the euro.

And this is what is more than a little surreal about the whole issue. The prospect of the euro collapsing is serious. Despite our willing it to happen, the impact on currency markets and the EU member state economies would be catastrophic – and prolonged. We could quite easily see Europe dragged into a depression, the like of which made the 1920s look like a rehearsal.

If Europe and the UK go down the US will definitely take a hit. A big hit. That could lead to a double dip recession. If that is followed by the collapse of the Chinese real estate bubble there could be a triple dip. And that is not even counting the uncleared real estate overhang in the US.

Richard North has more at Crash and Burn.

H/T Chuck at Pounding The Pound