Yup. Remember the 'credit crunch' that kicked all this off in 2008? A root cause of that was banks being exposed to mortgages that could never be repaid, because they were lent to people that should never have had them, and then packaged up together with other mortgage accounts (some of which were more or less toxic than others) and re-repackaged, and sold off from one bank to another, until it became impossible to work out how reliable any one package of mortgage debt actually was.
Banks became wary of lending to each other because they could no longer trust that the institution they were lending to had the reliable income stream necessary to pay back.
We are already spiralling towards a similar crisis of confidence in the Eurozone that could cause a similar refusal of banks to issue credit, but this could turn out to be a whole lot worse as we're talking about colossal sovereign debts formally being declared unpayable and being written off.
And even now, Merkel fiddles while Rome burns.
---------- Post added at 13:04 ---------- Previous post was at 11:27 ----------
http://www.bbc.co.uk/news/world-europe-15671354
Quote:
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Former European Central Bank vice-president Lucas Papademos has been named as Greece's new prime minister, following days of negotiations.
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So the Greek government is headed by a Euro-banker and the machine is being 'supervised' by EU civil servants ... and all in the cradle of democracy. What a sad day this is.