Liars led by junkies

“In my several decades as a financial and economics commentator – covering banking crises dating back to the early 1970s and the Latin American debt catastrophes of the early 1980s – I have never heard a sitting [Bank of England] governor talk in such apocalyptic terms about the parlous state of the global financial system.”

 

-       Alex Brummer, The Daily Mail.

So what precisely did our inflation-fighter-in-chief actually say ? Well, that euro zone instability had created

“an exceptionally threatening environment”

as falling government debt prices, softening confidence and distressed asset sales threaten to

“spiral”

into a systemic financial crisis. Also, the UK financial system was encouraged to continue building up capital to bolster against an

“extraordinarily serious”

situation not of its own making and which it could not resolve. Also,

“The crisis in the euro area is one of solvency not liquidity. And the interconnectedness of major banks means the banking systems and economies around the world are all affected. Only the governments directly involved can find a way out of this crisis.”

And

“If debt is not to [continue] exploding to ever more unsustainable levels, transfers will be required together with the plan to restore the competitiveness within the euro area. There comes a point where the creditors need to realise that the scale of the debt owed to them is so large that they may have to be part of the solution.”

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Comments

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Thanks for the pdf, very interesting.

[Dennis The Menance]

It is amazing to view and watch this whole housing bubble in hindsight. When their is a feeling of euphoria and excitement about something everybody gets caught up in it. Nobody in the bubble believes it will ever end but it will' This over confidence than causes the bubble to get bigger and bigger all the time until it bursts of its own weight.