Until 23th november, Germany was seen as one of the strongest economies to face the crisis of the Euro Zone. But the warning of a contagion to the center of Europe went on to strongly yesterday after the first time, the German government could not place all bond market debt.
In an auction that was seen by analysts as "completely disastrous" Germany could only put 65% of the six billion euros in bonds issued ten-year term. The situation brought down the price of the euro to its lowest level against the dollar since early October.In response, the possibility that the European Central Bank to issue bonds (called "Eurobonds"), which would be funded by the stronger economies like Germany and France, re-emerged as the most practical in the short term. While German Chancellor Angela Merkel reiterated his rejection of this idea, the president of the European Commission Jose Manuel Durao Barroso, presented two draft legislation for the first joint debt issues.This proposal is to increase the economic and budgetary discipline in the EU, intervening country budgets before approval. Also included are three options for carrying it out, that all national debt bonds of the euro countries are replaced by common issues, that only part of the national debt issue is linked with the rest of the euro, or to be created Eurobonds for only part of the debt, secured shared with the size of member economies.The political discussion on the topic again today, in the first meeting to meet Angela Merkel, French President Nicolas Sarkozy and Italian Premier Mario Monti.The lack of interest among investors to buy bonds of Germany results in a warning to the authorities ensure that the crisis "will not end as the bankruptcy of Lehman Brothers," said Marc Ostwald, strategist at Monument international brokerage Securities."O act together to find an immediate solution, which would mean a tremendous 'debt write' level governments and the ECB or the markets will continue disarming the Euro Zone," he said.Yesterday, the major indexes in Europe closed its eighth session negative. The London FTSE did so with a low of 1.29%, Germany's DAX fell 1.44%, and the Spanish IBEX lost 2.1%. The most beaten Italian was the FTSE MIB, which fell 2.59%.EuroThe "failure" of the issue of Germany brought down the euro to its lowest level against the dollar since early October.Germany in trouble B 83,900 million euros in Germany managed to place 10-year bond term. The placement was originally six billion euros.Emerging stock markets fall to crisis levels of 2009With seven days of consecutive decline, emerging markets have suffered the most extensive down time from the 2009 economic crisis. The MSCI Emerging Markets ended down 2.65% and reached its lowest level since October 7 this year, with 885 points.The first to be negative economic signals the collapse of the manufacturing indexes in China and the failed German bond issues were the Asian markets of Hong Kong, Taiwan and South Korea, which exceeded the 2% loss.Later would be in America: Brazil's Bovespa fell 1.62% and in Chile, the IPSA closed down 2.68%, accumulating a negative change in November so far of 7.18%, and 18 , 49% in the year.