Euro Zone Leaders Get Warning From Central Bankers

[alp227]

Source: The New York Times

PARIS — Germany is divided over Europe’s bailout fund. Finland may be jeopardizing Greece’s latest rescue. And Italy is suddenly backpedaling on austerity.

Jean-Claude Trichet and Mario Draghi, the current and incoming presidents of the European Central Bank, had a sharp message for Europe’s leaders Monday as financial markets swooned: Get your act together.

At a conference in Paris focusing on the world three years after the collapse of Lehman Brothers, Europe’s top central bankers couched their admonishment in diplomatic terms. But the warning was clear: Politicians are still not moving quickly enough to ensure that the European debt crisis doesn’t become seriously worse.

“The solvency of sovereign states should not be taken for granted,” Mr. Draghi said as the bond yields of Greece, Italy and other countries with weak finances jumped amid increased investor nervousness. Global stocks also posted steep declines amid worries about the health of the U.S. economy and Europe’s sovereign debt woes.

Read more: http://www.nytimes.com/2011/09/06/business/global/euro-zone-leaders-get-warning-from-ecb.html

[bemildred]

1. Arrest some of those "Central Bankers" and see what they say then. nt

[FrodosPet]

12. A good start

But then what? And which people specifically, and on what charge? How far down the chain do you go?

[underpants]

2. "not moving quickly enough" means not surrending assets quick enough

[lovuian]

8. Bingo give us your gold all your pension money all your savings

tax the people we need more and more bring them to their knees ...squeeze them politicians squeeze them

this are the words of King John ...and Dickens Little Dorrit

soon they will want Debtor prisons

The reality is the people (workers) will rise up

[Yo_Mama]

9. Well ,yeah, and after the revolt, they won't be able to borrow

So more austerity.

ECB is not admitting the reality that a bunch of countries have to default. But countries that are still borrowing more money to raise living standards don't have any good options - the crash will come no matter what they do.

You can't blame central bankers for reality. Greece is toast no matter what. Italy can get itself out of the mess by default, but not Greece. But even Italy faces a crushing recession no matter what it does.

I do blame policy makers for letting the debt get this high in the first place, and for the "extend and pretend" strategy that just allows countries like Greece to extend their agony.

[underpants]

3. Who made the loans?

You see when you point a finger AT someone there are three fingers pointing back at YOU

[dkf]

4. I don't think it was the ECB.

What is your point?

[underpants]

7. My point is that banks made the loans to get them deep in debt

we have fraudulent conveyance laws prohibiting the issuance of loans that the loaner should know is not repayable. That is not the case in any of the countries in the EU. JP Morgan and GoldmanSachs made loans that they knew full well could not be repaid. In fact, JP Morgan bet against Greece because they knew what their real debt was (JP Morgan was hired by Greece to hide debt) and are not only profiting off what they already knews (side bets) but are now demanding assets (Greece has given up their lottery earnings) such as ports, nice islands that JP execs might like, the telephone and electrical system.


http://trumanfactor.com/2011/rolling-back-the-progressive-era/

[Nihil]

10. Oh ... *that* is how you escaped the slump is it?

> we have fraudulent conveyance laws prohibiting the issuance of loans
> that the loaner should know is not repayable.

Ah well, as long as the bankers do what they "should" then we're all OK ...

:P

[FLPanhandle]

5. Europe should declare the Euro a failed experiment and follow Iceland's example

Go after the bankers.

[TacticalPeek]

6. Rick Perry better not find out.

Or they better run.

[Ghost Dog]

11. Cry baby bankers.

Now go fry.

:(