Financial Crisis: Who is going to bail out the euro?
Telegraph
09 Ottobre 2008
Europe must pull together if it is to avoid further financial disaster, argues Ambrose Evans- Pritchard
Better late than never. A half-point cut in global interest rates may not halt the slide into a debt deflation, but at least we can hope to avoid the errors of the Great Depression. The slump – remember – had little to do with the 1929 crash. What turned the mild recession of 1930 into the sweeping devastation of the early 1930s was an entirely avoidable collapse of the banking system in both the US and Europe.
The culprit was tight money, made worse by beggar-thy-neighbour policies. The key levers of power in Western finance were held by the sorts of people who now think it is a good idea to drive our banks over a cliff.
Thankfully, wiser heads are in charge this time. Yesterday's move by the US …
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