Meanwhile, in Europe…THEY ARE ALL IN BANKRUPCY !

[EDITOR’S NOTE: IMF has just given its forecasts for the year 2014. The economic situation of the Industrialized countries can be summed up in four words: They are in BANKRUPCY.

1- Japan : public debt of 242,3 % of GDP
2- Greece : public debt of 174 % of GDP
3- Italy : public debt of 133,1 % of GDP
4- Portugal : public debt of 125,3 % of GDP
5- Ireland : public debt of 121 % of GDP
6- United States : 107,3 % of GDP
7- Spain : 99,1 % of GDP
8- United Kingdom : 95,3 % of GDP
9- France : 94,8 % of GDP
IMF doesn’t mention Belgium. In March 2013, the public debt of Belgium was
of 104,5 % of GDP.
IMF Source:]

By Sprout Money via Zerohedge

For years, since the onset of the euro crisis, we have heard that the crisis is over. Every year, politicians keep on telling us that the worst is over, but that next year will be so much better. Do you really think so? Here are some hard facts & figures instead of wishful thinking of lying politicians showing that the euro crisis is not over. On the contrary, things are getting worse.


La Dolce Vita, the good life, is no longer achievable for millions of Italians. Italy is the third largest Eurozone country and is in dire straits. Public debt has ballooned to well over 130 percent! Is this money ever going to be repaid? Who is going to do that? The country has one of the fastest aging populations in the world. Italian women, when having any children at all, prefer to have just one child. In order for a society to maintain a healthy demographic balance, they should have at least two. Nonetheless, unemployment, from a European perspective, is relatively low at 12 percent. But wait, youth unemployment is virtually at 40 percent. So there are no jobs in Italy, public debt is out of control and its aging population lays a heavy burden on both income taxes and Social Security payments.


Spain is one of the Eurozone’s largest countries. It is not in a recession, but in a downright depression. Do you need some figures? Unemployment stands at 26.3 percent?. That means more than one out of every four workers is idling and receiving benefits from government and waiting for better days. Even worse, youth unemployment is a staggering 57 percent. Indeed, more than one out of every two youngsters is out of work or is not expected to find one soon. Do you need more proof? Spanish government is spending billions on Social Security, money it simply does not have. Public debt has gone from a fairly modest 30 percent in 2007 to well over 90 percent this year and will soon move to 100 percent and beyond.


Portugal is one of the smaller Eurozone countries in the Mediterranean Sea with an economy that is in shambles. The country had to be bailed out by the rest of the Eurozone to the tune of €78 billion. Public debt is around 128 percent, hardly lower than Italy’s. Unemployment hovers around 16.5 percent, which is unsustainable in the medium term. Youth unemployment stands at a depressing h 42 percent.

Although it seems that Portugal has lived up to its promises as part of the bail-out programme, the country will need a second bail-out coming 2014. Of course, it will be paid by other Eurozone members having a healthier economy.


Europe in Shambles

Politicians babble about the worst of the crisis being behind us, or even ‘fixed.’ That is just cheap talk. The hard facts & figures prove them wrong. Europe is on the verge of a genuine collapse. On the one hand, this is because the Euro simply does not work, but makes things worse instead. On the other hand, Eurozone member states are simply unable to devaluate their currencies as they are part of the single currency bloc. As long as this flawed monetary currency, or rather political currency, is kept afloat, less well-off countries within the Eurozone will continue to suffer.

The ECB, the European equivalent of the Fed, will do ‘whatever it takes’ to keep the single currency alive. For now, markets have accepted this, but in the near term they will call their bluff. When, not if, that happens, the euro will be gone and with it billions worth of paper assets, wreaking havoc on an already damaged economy.

Does the graph below suggest the crisis has been solved?

Courtesy: Zerohedge… of course

Europe has run OUT OF MONEY

The Eurozone has close to 20 million unemployed. These are millions of people requiring need food, housing and medical care. This is simply unaffordable in the medium term. Youth unemployment is a ticking time bomb. It will not take long before young people will take to the streets, demanding jobs and a comfortable future.

Has the crisis been solved? Will the Eurozone recover any time soon? We would not bet on it. Europe is an ageing, moribund continent and the sh*t will hit the fan sooner rather than later. Europe has simply run out of money due to its overgenerous entitlements. What will it take for people to start noticing?

It has started: Bankrupt – Jon Corzine, Former NJ Gov & Sachs CEO, Obama Money man


The party’s over for Jon Corzine as risk-taking former governor and

ex-Goldman CEO’s $41bn fund files for one of the biggest bankruptcies ever

  • MF Global Holdings files for bankruptcy protection

  • Corzine is former Goldman CEO and Democrat N.J. governor

  • He made risky bets on European sovereign debt

It looks like Jon Corzine’s love of risk-taking is finally proving to bring him down after his securities fund today filed for bankruptcy protection.

Futures brokerage MF Global Holdings filed after a tentative deal with a buyer fell apart, marking a stunning failure for its 64-year-old CEO.

His career has taken him to the top echelons of Wall Street as Goldman Sachs CEO, into politics as a U.S. senator and to New Jersey governor.

Troubled: Jon Corzine, MF Global Holdings CEO, left, leaves his office in Manhattan, New York, on Monday as it filed for bankruptcy protection

But the MF Global meltdown makes it the biggest U.S. casualty of Europe’s debt crisis, as it pays the price for his risky bets on sovereign debt.

The Chapter 11 bankruptcy filing came after talks to sell a variety of assets to Interactive Brokers Group reportedly broke down earlier on Monday.

It also comes one week after MF Global, whose shares plunged 66 per cent last week, reported its biggest-ever quarterly loss.

Besides the loss of $186.6million for the fiscal second quarter, investors were spooked when MF Global’s debt was downgraded to junk status.

The seventh-largest bankruptcy in U.S. history by assets is reminiscent of when Lehman Brothers fell at the peak of the financial crisis in 2008.

MF Global traders and counter-parties were left scrambling and confused on Monday, as the fund halted its shares.

 Risk-taker: His career has taken him to the top echelons of Wall Street as Goldman Sachs CEO, into politics as a U.S. senator and to New Jersey Democrat governor

But it did not file for bankruptcy until well after the U.S. markets opened. ‘Ultimately it will have lost all confidence of its investor base,’ said Michael Epstein, a restructuring adviser with CRG Partners.

‘Ultimately it will have lost all confidence of its investor base… in some respects, it’s a baby Lehman, in effect’

Michael Epstein, restructuring adviser with CRG Partners

‘I’m not sure what restructuring it actually does. In some respects, it’s a baby Lehman, in effect.’

Three traders wearing MF Global jackets were seen leaving the Chicago Board of Trade prior to the opening of pit trading.

Floor sources said they had been turned away after their security access cards were denied.

Jeff Carter, an independent futures trader in Chicago, said the impact on the markets should be smaller and nothing like when Lehman failed.

Mr Corzine’s decision to chase yield by going after European sovereign debt was clearly ill-advised and always seemed much too risky, he said.

Money man: Mr Corzine is also a top fundraiser for Barack Obama, helping raise at least $500,000 for the President’s re-election campaign since April

MF Global scrambled through the weekend and into Monday to find buyers for all or parts of the company.


  1. Lehman Brothers, 2008: $691billion in assets
  2. Washington Mutual, 2008: $327.9billion
  3. WorldCom, 2002: $103.9billion
  4. General Motors, 2009: $91billion
  5. CIT Group, 2009: $80.4billion
  6. Enron, 2001: $65.5billion
  7. Conseco, 2002: $61.4billion
  8. MF Global, 2011: $41.1billion

SOURCE: / Wall Street Journal

But at the same time it was hiring restructuring and bankruptcy advisers in case nothing could be done.

Mr Corzine was trying to transform it from a brokerage that mainly places customers’ trades on exchanges into betting with its own capital.

He took over MF Global early last year. It has turned a profit just three times in the past 12 quarters.

Mr Corzine is also a top fundraiser for Barack Obama, helping raise at least $500,000 for the President’s re-election campaign since April.

MF Global, which filed in New York, has assets of $41.05billion and liabilities of $39.68billion, according to its bankruptcy petition.

‘The real question is how many assets will be left to transfer,’ said Niamh Alexander, an analyst at Keefe, Bruyette & Woods.

Bank stocks dropped broadly on Monday after the bankruptcy filing. Bank of America fell 4.5 per cent and Citigroup plunged 5.5 per cent.

(Source: Mail Online)