An expat's view: politics, economics and life in Italy, Britain and other places.
01 December, 2011
The consequences of inaction
Extraordinary goings on in the financial markets. It would appear that several European banks were unlikely to be able to roll over their US$ short-term debt, and no procedure existed in the Eurozone to help. Accordingly a group of central banks, led by the US Federal Reserve, guaranteed the $ / € swap needed to prevent the contagion spreading all over the world.
If this is true, as unfortunately seems likely, it is a damning indictment of the indecision, incompetence and poor planning of the Euro-financial system. It is said that we get the politicians we deserve but I can't believe anyone deserves this lot.