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The EU will copy the US taxpayer bank bail out?

Posted by Adrian on October 6, 2008

That ridicules Italian PM spreading rumours.

The most Europe will do is buy stakes in banks and insure bank deposits such as Ireland, Germany and others have done.

To create a fund such as the US government has done, would send Europe into a mass of riots and civil unrest. Germany and France know this all to well (hence their denial of the rumour, at this point)

Since the central banks of the world have distinguished two economies (the banks on one hand and the wider economy on the other) they have essentially created a clear differentiation of the priorities of central banks and their role (or lack of).

The US has created a precedent, if though it is going to be a failure to stablise the wider markets, apart from bank bond holders and creditors.

The world is still heading for a bad recession.

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One Response to “The EU will copy the US taxpayer bank bail out?”

  1. Paul Vincent said

    Could you elaborate why creating such a fund would “send Europe into a mass of riots and civil unrest”?

    Great blog by the way.

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