Anorak

Anorak | What’s Really Wrong In The Eurozone: The ECB-Triggered Depression Looms

What’s Really Wrong In The Eurozone: The ECB-Triggered Depression Looms

by | 15th, November 2011

HOW we got here is something that we can all argue over. Workshy Greeks, idiot politicians, bankers’ greed, whatever, knock yourself out with your favourite explanation. However, where we are is easier to explain.

We’re just before a Depression. Yup, one just as bad as the one 80 years ago. And yup, for exactly the same reason.

No, that’s not workshy Greeks, bankers’ greed but it is idiot politicians and central bankers. What turned the 1929 Crash into the 30s Depression was the way that the money supply was allowed to contract . It just didn’t have to happen at all.

What’s happening now over in the eurozone ?

Greek banks are insolvent, it’s true, if you mark their sovereign debt exposure to market. But to a first approximation,

You have already read 1 premium article for free today
Access immediately the premium content with Multipass

Or come back tomorrow



Posted: 15th, November 2011 | In: Money Comment (1) | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink