Euro – Austerity to fund failed institutions
Wednesday, 8 September, 2010 Leave a comment
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I am not alone in “banging on” about the lack of TRANSPARENCY in the banking system (and wider financial sector). The man on the street didn’t know or care much for how the sector conducted business as long as the had a job (income) and could afford the odd “luxury”. Many were happy in their ignorance and content to leave Governments to get on with the job in hand BUT MUCH HAS CHANGED and with the likelihood of more Corporate defaults (Connaught has been coming for some time), as well as at sovereign and state levels in EU and USA respectively, imminent the levee is gonna break.
What is the difference between a global recession and a global crisis!?
The EU banking system is in big trouble. That’s why European Central Bank (ECB) head Jean-Claude Trichet continues to purchase government bonds and provide “unlimited funds” for underwater banks. It’s an effort to prevent a financial system meltdown that could wipe out bondholders and plunge the economy back into recession.
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