LLOYDS OF LONDON PREPARES FOR EURO COLLAPSE

The mega-billion dollar Lloyd's of London has publicly admitted that the world's leading insurance market is preparing for a collapse of the EURO. Lloyd's fears are likely to be shared by a number of European businesses, which are watching developments in Greece. The contingency planning comes as German politicians piled the pressure on Greece ahead of elections on June 17. A conservative member of German chancellor Angela Merkel's cabinet said today Germany would not "pour money into a bottomless pit". On Sunday, Swiss central bank chief Thomas Jordan admitted his country is drawing up an action plan in the event of the euro's collapse. What would happen to the U.S. economy if the euro currency union cracks apart, start with the volume of U.S. exports to the euro zone — $153 billion in the first six months of the year. Add several hundred billion dollars in investments by U.S. banks in the euro zone and several trillion dollars worth of other financial contracts between the two economies. American banks and companies could find themselves battling with any country that leaves the euro union and reinstates its own currency. “The risk is likely paralysis,” said Michael Hood, a market strategist at J.P. Morgan Asset Management. “You won’t even know what people owe you.”
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