A Trillion for Europe, With Doubts Attached

…as details crystallized of the package’s main component ”” a promise by the European Union’s member states to back 440 billion euros, or $560 billion, in new loans to bail out European economies ”” the wisdom of solving a debt crisis by taking on more debt was challenged by some analysts.

“Lending more money to already overborrowed governments does not solve their problems,” Carl Weinberg, chief economist of High Frequency Economics in Valhalla, N.Y., said in a note. “Had we any Greek bonds in our portfolio, we would not feel rescued this morning.”

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Posted in * Culture-Watch, * Economics, Politics, * International News & Commentary, Credit Markets, Economy, Europe, Globalization, Greece, The Banking System/Sector, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--