Quote:
Originally Posted by Chris
Why exactly should institutions whose job it is to lend money in order to earn interest, lend money in places where they have a reasonable suspicion they won't get it back? Excessively risky lending is what got us into this mess in 2008 - money men not withholding when they really should have. Or is your memory really so short?
Spain's cost of borrowing reflects the level of risk the market attaches to the transaction, and that assessment is made with good reason. The Euro is fundamentally flawed by design. It worked fine only as long as conditions were benign but it has failed miserably in the face of its first serious challenge. The floundering economies of Europe cannot be salvaged as long as they remain within the Eurozone. As long as they remain in the EZ, the cash injections required to keep them afloat are inherently risky, and therefore subject to punitive rates of interest.
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this problem chris
How much these countries overstretched bailing out there banks look at spain now despite issues. Still bailing the parasites out which clearly making things much worse.
Because banks know they will be bailed as what happens to people money in those banks, peoples homes.
Lets not forget in spain one problem was overhyped housing market who caused this banks and money men. How much was this down to libor scandal too. So again not government.
Without any countries bailout then the banks would suffered the brunt this, also those money men who got caught with pants down. Why the money men should cut some slack.
Fact some these money men may been behind some the problems which caused banks to go belly up by getting involved in the sublime and ponze scheme.
Why should countries be blamed for there incompetance.
Works all ways dont it.
Surely those risks in 2008 are to blame who did that.
Take bg look whole picture it surely looks quite an organised effort to shove bad debts to governments then force them into austerity measures no doubt massive sale of assets.