11-10-2011, 06:59 AM
|
|
|
there's no $$$ in porn
Industry Role:
Join Date: Jul 2005
Location: icq: 195./568.-230 (btw: not getting offline msgs)
Posts: 33,063
|
http://mises.org/daily/5798/Will-the...x-the-Eurozone
Quote:
Summary and Conclusion
Last week European leaders secured an agreement for eurozone banks to take a 50 percent loss on the face value of their Greek debt. The leaders also formulated a plan for the recapitalization of banks. Also, policy makers have agreed to expand the emergency bailout fund to $1.4 trillion from $610 billion. We suggest that what is required to fix the eurozone is not just strengthening banks' capital bases but strengthening the capital base of the eurozone as a whole. Policy makers insist that the banks' recapitalization must take place without a process of deleveraging, which they view as bad for the economy. This means that the authorities will aggressively counter any side effects of deleveraging, such as a credit crunch or economic slump. We suggest that, on the contrary, deleveraging is necessary to clean up the system and lay the foundations for solid economic expansion. In fact, any policy aimed at countering the deleveraging process will only make things much worse.
|
|
|
|