Monday, April 18, 2011

Euro vs. Invasion of the Zombie Banks

Great article about the financial crisis prospects in Europe. It starts with explaining how people are losing faith in the banks, therefore making less deposits, where as we have learned from the Great Depression that that causes more harm to economic stability. The EU needs to build consumer confidence, and by any means necessary. How do they influence consumer confidence? Suggestions?

Also, this paragraph at the end is my favorite. Really pulls together the problems of the EU and puts an interesting negative tone on it. What are your thoughts?

"ALL of the ways forward look ugly but, sooner or later, some variation of at least one of them is likely. Unfortunately, they all share the property of lowering European bank values, whipsawing currencies, hurting business confidence and possibly ending the European Union as an effective institution for collective decisions. That’s all because the euro, in retrospect, appears to have been a misguided attempt to equalize the values for some very unequal assets, namely the bank deposits of strong countries and those of weak countries."

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