Panic begins to set in........

(Bloomberg) Euro-region central bank governors will hold emergency talks tomorrow aimed at stopping Spain and Italy from becoming the next victims of the sovereign debt crisis and limiting the market fallout from the first U.S. rating downgrade in history.

The central bank heads will hold a conference call at 6 p.m. Paris time, said a euro-area central bank official who declined to be identified because the talks are confidential. An spokesman for the European Central Bank declined to comment. The call come as the Standard & Poor’s downgrade risks further derailing efforts to stop the debt crisis from engulfing the euro-area’s third and fourth-largest economies.

“Europe is in an incredibly dangerous situation,” Nick Kounis, head of macroeconomic research at ABN Amro in Amsterdam, said in an interview by telephone today. “The risk is that the U.S. downgrade is just going to unsettle everyone even more. It’s a unique situation in that we are essentially in the heart of a European sovereign debt crisis, which has reached its meltdown phase.” ...........(more)

The complete piece is at: http://www.bloomberg.com/news/2011-08-06/euro-region-central-banks-will-conference-tomorrow-on-debt-u-s-downgrade.html

the downward spiraling is gaining momentum. 2012 will be a VERY interesting year.

as long as they stayed with the coalition. That authoritarian should have been in prison ages ago.

:evilgrin:

bumpy ride doesn't even begin to describe this. We are all in for third world of hurt.

btw - I k&r this and the recommends stay the same. Why would someone unrec this?

There's so much uncertainty and fear out there right now. I'm hearing about mass exodus from equities over the weekend already.
Monday will be a horror for the indexes.

'The only thing we have to fear is not being able to short treasuries.'

Thanks for the thread, marmar.

in Europe. Unfortunately, they're mostly Stalinists, but maybe there's enough OTHER Marxists to keep them in check. This could lead to a United Socialist States of Europe. Or as another poster said, it could lead to a rise in fascism. Again. It will be interesting. As in "May you live in interesting times" the old Chinese curse.