Europe’s Banks Need a TARP of Their Own – Bloomberg   “With bank runs already under way, the immediate requirement is a euro-area Troubled Asset Relief Program like that used in the U.S. to clean up the banks during the 2008 financial crisis. The existing European Financial Stability Facility and the anticipated European Stability Mechanism aren’t up to the challenge. Both mechanisms provide funding to recapitalize banks through their sovereigns — reinforcing the links between the banks and their sovereigns in a vicious cycle of declining creditworthiness. It also is unclear that they will have sufficient resources to meet the growing challenge.”

Fiscal Cliff Is Closer than You Think – MarketWatch    “U.S. economy is already feeling the pressure. … After all, what firm would want to ramp up its investments in new plants or equipment — not to mention adding to their workforce — given the dire scenario that apparently lies ahead? For their part, consumers are once again closing their wallets, expecting the worst.”

EU to Renegotiate Bailout Terms With Greece: Official – CNBC   “Greece and its international lenders will renegotiate the program on which its second financial bailout is based because circumstances have changed, a senior euro zone official said on Tuesday.”

Desperate Greeks Withdraw Money from Accounts – Der Spiegel   “Many Greeks are emptying their bank accounts out of fear that the country may return to the drachma. But most of the money is not going abroad. Instead, individuals are storing cash in safe deposit boxes or at home — leading to an increase in burglaries.”

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