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A Good Explanation

The BBC has a decent piece to give people more understanding of What really caused the eurozone crisis?

It turns out that Spain was much better than Germany or France in following the rules of the Eurozones limits, but that had nothing to do with their ‘debt crisis’. It was the banks, first, last, and always, and the banks are not being made to pay for their disaster.

Greece is a basket case because the banks loaned them bales of money, when any competent banker should have known that they weren’t a good risk. The European Central Bank keeps claiming it can’t function as the lender of last resort for countries, but it can come up with billions for banks that are shaky.

France and Germany aren’t defending the Euro, they are defending French and German banks – the institutions most responsible for this mess.

December 22, 2011   Comments Off on A Good Explanation