The Most Critical Time Since The Start of The Financial Crisis: July to September 2013

By Lawrence

Comic BombEurope has been on life support ever since the start of the financial crisis. One key mechanism that will be put in place is the ESM starting July 1, 2013. It is supposed to replace the existing temporary solutions including EFSM and EFSF.

Notice that this new mechanism is different from the case by case deals so far done in Europe. There will be strict rules in place for any financial assistance going forward. It will be the ultimate test of the unity of EU and the determination of ECB in enforcing the rules should countries fail to meet the necessary requirements but in dire need of capital to survive.

During this time there are 2 more key events happening within the month.

1. July 5 is deadline for the 18 large US bank holding companies to submit the result of their midyear stress tests

2. June 18-19, July 30-31 FOMC meetings

After that there are the German elections to deal with in September.

It will be a very eventful 3rd quarter this year. Be prepared.

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