November 8, 2011
European Leaders Call an Emergency Meeting on Nov. 17th!
Eurozone Finance Ministers are calling an emergency meeting on Nov. 17th. What for? They fear the bail-out fund may be too small.
(You know things are bad when 1 trillion euros won’t plug the hole!)
They are now saying that the EFSF fund may need to be 2-3 times larger. In other words, they may need to increase the size of the fund by 1-2 trillion more euros. Wow!
This tells us that they fear their “firewall” isn’t strong enough. It shows that there’s a good chance of this contagion spreading further and having an even bigger impact or they wouldn’t be freaking out like this.
Ultimately, that’s not good news for the euro. However, it could be good for the defensive greenback for now.
So look for more volatility to come…more bumps in the road for riskier assets and for money to flow toward the defensive assets more.
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