From Bad To Far,Far Worse-Germany - Italy's Too Big For EFSF To Save,Refuses To Carry Bailout Burden

http://www.zerohedge.com/news/it-just-went-bad-far-far-worse-germany-says-italy-too-big-efsf-save-refuses-carry-euro-bailout-

Remember when we said (yesterday) http://www.zerohedge.com/news/explaining-how-just-announced-ecb-market-rescue-pledged-133-german-gdp-cover-all-europes-bad-de that Germany will soon balk over the fact that it is pledging its entire economy to bail out an insolvent Europe? Well, that moment has come. Dow Jones just hitting the tape referencing Spiegel http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201108061248dowjonesdjonline000231&title=german-government-thinks-italy-too-big-for-efsf-to-save--spiegel

German Govt: Italy Too Big For EFSF To Save - Spiegel
German Govt: Doubts Whether Tripling EFSF Would Help It Save Italy
German Govt: Italy Must Make Savings, Reforms To Exit Crisis - Spiegel
Italy Debt Guarantee Could Raise Doubts Over Germany's Finances - Spiegel
German Govt: EFSF Should Only Help Small, Mid-Size Countries - Spiegel

As a reminder, yesterday's stopgap announcement by the ECB http://www.zerohedge.com/news/stocks-euro-surge-another-central-bank-intervention-announcement-ecb-ready-buy-italian-spanish- to expand its SMP purchases of secondary market Italian and Spanish bonds was merely as a precursor to full EFSF monetization until its comes fully online in September (or sooner) in a vastly expanded format (between €1.5 and €3.5 trillion). http://www.zerohedge.com/article/fatal-flaw-europes-second-bazooka-bailout-82-million-soon-be-very-angry-germans

If Germany is now against this, which appears to be the case, it pretty much means, well, game over. Add the uncerainty over the unwind of the Europe rescue "gamechanger" as one of the more naive CNBC anchors said yesterday, and Monday is now guaranteed to be a bloodbath.

As for those saying China will gladly step in and fund a $5 trillion EFSF shortfall, they may want to read the following article from Reuters : http://www.reuters.com/article/2011/08/04/italy-cenbank-tremonti-idUSLDE7730Z720110804 Italian Economy Minister Giulio Tremonti said on Thursday that Asian investors are reluctant to buy Italian bonds because it sees they are not being bought by the European Central Bank.

snip

Thanks for putting this all together.

as the great Saviour. China has their own problems.
Inflation for one.

China is going to lead the world out of this financial
crisis. The middle class in China earn 500dollars a month.
Yes they can afford to buy items made by workers in the
West who earn 10 and twenty times that much.

Likewise India.

I am happy these countries are growing. Not so happy
they are growing at the American Worker's expense.

The West (First World) what ever you wish to call
the Developed Countries had better get their headss
together and figure out how they can straighten themselves
and their countries. China and India are going to look
out for their own self interest. One of their highest
goals in maintaining stablity in their own countries.
Yes, they have made great strides, but do not try to
sell some notion, they are going to lead us anywhere.

As fragile as we are, we are still the Leader of the
Free World. Would our Leaders get a grip work with
other countries and come up with soem solutions.
It is too bad, everyone including other European
countries dismissed exPrime Minister UK, Browne.
His book has some solutions which might have worked.

Oh, no. Lets go right and push Austerity. That
is not working in Europe so now Obama and the Republicans
decided to push it on America. Give them a bigger
shovel. The Markets know this is a loser.

...... and if Spain & Portugal (and perhaps Belgium) follow. Well. :nuke:

We are gonna be for one of those wild rides

And the US government is too disfinctional to do anything to help. So we are truly fucked and anarchy will soon prevail.

(damn, did I say that on DU? Me the DLC'er and so-called corporatist?)

to work together and show us how it's done. Obviously, I'm NOT a DLCer or corporatist.

Ready to talk about socialist solutions yet? :)