European Collapse Closer

[JohnyMac]

I just took a break from building a closet at the BOL and found these two disturbing articles. There doesn't seem to be a lot of Euro news on the TV lately. Maybe its due to the Presidential elections; who knows.

With that said, I wonder when the Euro will break up? I wonder if it will slowly wither; country by country. Or I wonder if one country will bale and then the whole thing will come crumbling down in one big ass collapse. How will it affect the US of A?

Bank of America Merrill Lynch has looked into filling trucks with cash and sending them over the Greek border so clients can continue to pay local employees and suppliers in the event money is unavailable. Ford has configured its computer systems so they will be able to immediately handle a new Greek currency.

No one knows just how broad the shock waves from a Greek exit would be, but big American banks and consulting firms have also been doing a brisk business advising their corporate clients on how to prepare for a splintering of the euro zone.

http://www.nytimes.com/2012/09/03/business/economy/us-companies-prepare-in-case-greece-exits-euro.html?_r=1

The latest trouble is the inability of Spanish banks to finance themselves through usual means. Capital markets remain largely shut because investors refuse to buy bank bonds at affordable prices. And customers, nervous about the banks' health, are increasingly yanking their deposits.

The banks appear to be exhausting their capacities to wring cash out of the European Central Bank, the lender of last resort for much of Southern Europe's battered financial system [see this discussion on how the National Central Banks fund this lending].

http://www.forexpros.com/analysis/bank-of-spain-provides-emergency-loans-to-spanish-banks;-pressure-mounts-135219

Last, the Fed traded US Dollars for Euros back in December of 2011. I just heard that we are about ready to do the same thing. Its a back door way of loaning money without raising the ire of the American people.

The Fed is using what is termed a "temporary U.S. dollar liquidity swap arrangement" with the European Central Bank (ECB). There are similar arrangements with the central banks of Canada, England, Switzerland and Japan. Simply put, the Fed trades or "swaps" dollars for euros. The Fed is compensated by payment of an interest rate (currently 50 basis points, or one-half of 1%) above the overnight index swap rate. The ECB, which guarantees to return the dollars at an exchange rate fixed at the time the original swap is made, then lends the dollars to European banks of its choosing.

http://online.wsj.com/article/SB10001424052970204464404577118682763082876.html

Well back to work on the closet. Yes That Guy...Everything is level 

[swampfox]

well JohnyMac it looks like the crunch for Europe is not far off...it looks like its all ready happening in Spain.

Breakdown: Three Tons of Food Looted From Grocery Stores In Spain As Millions Struggle

In Spain, a country that just a few years ago was heralded as a shining example of real estate entrepreneurship, international tourism and a rising middle class, the situation is so bad that many are unable to meet the most basic necessities for life.

Social safety nets across the continent are visibly under stress and breaking down, so much so that unemployed Spaniards have begun raiding supermarkets in order to put food on the table. As recently as last month the people of Cadiz and Sevilla, which have a reported unemployment rate of 32%, joined together to loot local grocery stores of three tons of food

there is video of this in the article and i  would suggest watching and taking note of the reaction of the looters, store owners, bystanders, and the general public since this may give a gauge of how people in the US might react during such an event.

Link: http://www.shtfplan.com/headline-news/three-breakdown-three-tons-of-food-looted-from-grocery-stores-in-spain-as-millions-struggle_09052012

[thatGuy]

Well back to work on the closet. Yes That Guy...Everything is level 

Sorry for the sidebar gents.

OH NO JMAC!!!

I always hang my closet doors out of plumb so that they close themselves. It is usually 1/8" to 5/16" to make that happen depending on the door, hinge and general level of the house.

On topic,

James Carville said, "The economy, stupid" he was getting Bill Clinton elected in '92.

We are really lucky (I suppose) that the P.I.I.G.S. are leading the way. Study these events, study the news and study the markets. If the Spanish market can not meet the needs of the people then I am sure it would also show what idems need to be prepped based upon the empty shelfs.

We can all see that it is going down, Europe is warning us right now.

[EJR914]

Yep, the waves from the Euro-crash will be felt here immediately.  I knew this was going to happen one day, but its always crazy to see it happening before your eyes.  Greece, now Spain.  I agree, time to prep up everyone.

[JohnyMac]

Swampfox and TG, you are 100% correct: Not unlike a football team preparing for their next opponent by watching video of that team, we have the opportunity to sit back learn. Great point gents!

That Guy Wrote:
OH NO JMAC!!!
I always hang my closet doors out of plumb so that they close themselves. It is usually 1/8" to 5/16" to make that happen depending on the door, hinge and general level of the house.

  [URL=http://www.smileyvault.co

I installed Craft Master Bi-fold wood doors that are set in a channel. If I didn't install them plumb they wouldn't close