Saturday, October 8, 2011

Reuters: Europe's "Lehman" Dexia to Break Up Sunday

Breaking up Dexia into a "bad bank" guaranteed by France and Belgium does nothing but shift the solvency issues from Dexia to France and Belgium.
Does it make rational sense that gold and silver are trading at major DISCOUNTS from recent highs in this type of environment?  Consider yourselves BLESSED FROM GOD for the recent corrections!
QE will continue TO INFINITY....AND BEYOND!

* Dexia board meeting expected to meet on Sunday
* France, Belgium arguing over who will pay to salvage Dexia
* Experts sorting out rescue terms, politicians talking
* Moody's warns Belgium of possible bond ratings downgrade
* Dexia is first European bank meltdown amid euro zone crisis

PARIS/BRUSSELS, Oct 8 (Reuters) - France and Belgium thrashed out plans on Saturday to break up stricken bank Dexia and divide its "bad bank" assets to preserve the financing of hundreds of towns in both countries and avoid a deepening of the euro zone debt crisis.
Dexia, whose board is likely to meet on Sunday, was forced to seek government help earlier this week after a liquidity crunch hobbled the lender and sent its shares into a tailspin.
Dexia's overall credit risk exposure is 512 billion euros, of which 60 billion is in North America. The 'bad bank' will hold 95 billion euros in bonds, including 12 billion euros sovereign debt of weaker euro zone periphery nations.

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