Panic contagion

Ambrose Evans-Pritchard is in panic mood:


Europe stumbles blindly towards its 1931 moment
It is the European Central Bank that should be printing money on a mass scale to purchase government debt, not the US Federal Reserve.
Unless the ECB takes fast and dramatic action, it risks destroying the currency it is paid to manage, and allowing a political catastrophe to unfold in Europe.
If mishandled, Ireland could all too easily become a sovereign version of Credit Anstalt - the Austrian bank that brought down the central European financial system in 1931, sent tremors through London and New York, and set off the second deeper phase of the Great Depression, the phase when politics turned ugly.
“Does the ECB understand the concept of contagion?” asked Jacques Cailloux, chief Europe economist at RBS. Three EMU countries have already been shut out of the capital markets, and footloose foreign creditors hold €2 trillion of debt securities issued by Spain, Portugal, Ireland and Greece....
Full text
Comment: Ambrose is a better writer than thinker. His talk is nonsense and contradictory. What we really have is the second assault on the euro by the same group that desastrously failed the first time when they tried. Another great opportunity to get out of US stocks, US bonds and out of the US dollar. Probably the last chance.