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NEWS and REPORTS => World News => Topic started by: THP on Sep 15, 2011, 12:02 AM

Title: Europe Is a Sovereign Debt Crisis and a Bank Solvency Crisis
Post by: THP on Sep 15, 2011, 12:02 AM
The European crisis looks to be worse than 2008 in the U.S. That's because it is both a sovereign debt problem for Greece, Portugal and possibly Spain, as well as a a crisis for the European banking system, whose shares are losing value almost every day.In the U.S., you see, there was a sovereign debtor and a central bank, the Federal Reserve, that together staved off the crisis by pouring trillions in the financial system here and in Europe. Today, it's not clear -- but muddy --as to whether the European Central Bank, the Bundesbank (the German Central Bank) will have sufficient fire power to stave off default.More... (http://www.huffingtonpost.com/robert-lenzner/europe-is-a-sovereign-deb_b_961105.html)

Huffington Post