Eurozone ministers fail to create €1 trillion bail-out fund

[dipsydoodle]

Source: Daily Telegraph

Eurozone finance ministers have failed to sanction measures to create the bloc's crucial €1 trillion bail-out fund – despite warnings that Europe is dangerously ill-equipped to cope with the financial and economic crisis enveloping Italy.

Despite publishing a more detailed mandate following a summit in Brussels, the Eurogroup delayed agreeing specifics on how to leverage the €440bn European Financial Stability Facility (EFSF), risking further market turmoil ahead of votes on Tuesday that could topple Silvio Berlusconi's government.

Read more: http://www.telegraph.co.uk/finance/financialcrisis/8875427/Eurozone-ministers-fail-to-create-1-trillion-bail-out-fund.html

[dkf]

1. Even our dysfunctional Congress was able to do what it needed to do

[customerserviceguy]

5. All it did was kick the can down the road

The supercommittee will fail to approve anything that will even pass one house of Congress.

It's starting to get serious, most economic analysis of Europe I've seen is that they've already begun their double-dip.

[muriel_volestrangler]

2. I've never understood this 'leveraged stability facility', myself

It seems to involve thinking someone will lend money which is meant to be an emergency fund. I would think that seems contradictory.

[dipsydoodle]

3. Try this

http://www.worldbank.org/financialcrisis/pdf/levrage-ratio-web.pdf

I have a feeling it may also relate to CDSs especially where CDSs are covered by CDSs which are covered by CDSs ad infinitum and in the event of a complete default by Greece may cause the entire system to collapse.

May be time for Stavros to become Greece's leader http://www.youtube.com/watch?v=0mYssEXILjc

[aquart]

4. Have they considered taxing the rich?

Or nationalizing the banks. (I throw that in for fun.)

[dkf]

6. They don't have a common tax do they?

[dipsydoodle]

7. Not across the EU

Each country has its own tax rules both for income tax and VAT.