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Thursday, 6 October 2011

BOE - getting their actions in before Euro collapse?

Can't help but admire the Monetary Policy Committee, recapitalising UK's banks by the back door, before the possible debacle on the continent? Even though I don't agree with the policy!

Greece will default soon, haircuts all round for the French banking system? Germany will bail out her banks, says their Chancellor.  Will the Germans bail out the Irish, Portugese and Italian banks next? This political posturing has to stop soon. 

There is, to me little point in Euro Bonds as a possible solution. Is it just me or is the mixture of toxic debt and clean debt, then being wrapped up in a pretty ribbon and called "prime", just the same thing that led to the last global banking collapse? Why repeat that?

Can the Euro survive?  The nettle needs grasped now, pain will of course follow, but the Greek exit from the Euro will not lead to the end of the financial world, as forecast by some politicians and economists. It will in time lead to a recovery.

In the world of turnaround and insolvency, debt is written off or down, recovery often follows. Creditors lose monies.  Capitalism working as normal. That I am afraid hasn't really happened sufficiently yet in the banks and by extension the insolvent states.

Extend and pretend? Printing more money? Debate but don't take action?

All to easy. Stronger medicine needed.

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