Posted on 07/29/2014 6:06:29 PM PDT by Lorianne
Despite investor enthusiasm, economic risks are rising in Europe, as amply illustrated by the recent problems of Portuguese bank Espiritu Santo.
But rather than create growth, boost inflation and weaken the euro, the European Central Bank program announced in early June is likely to have unintended consequences.
The ECB initiatives also do not address the fundamental problems of over-indebtedness and need for structural reforms. Maintenance or increasing debt levels is a curious solution to a problem of too much, not too little debt, which lies at the heart of the European crisis.
(Excerpt) Read more at marketwatch.com ...
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