...so the socialist states over there are WORSE off than we are? And the solution to our crisis is to copy the European model? Am I understanding this correctly????
the plan is to have complete control over the economy. have the govt own everything instead of just taxing and redistributing wealth of the free market.
Yes, for two different reasons:
1. Their banks were levered up to higher extents than we were. Our i-banks were levered up between 30:1 to 40:1.
Some of their banks are levered up as high as 48:1.
2. The ECB doesn’t have a record or a plan in place for “open market operations” the way our Fed does. The ECB is worried first and foremost about price stability and defending the value of the Euro. These types of bank failures will be a completely new shock to them.