History have told us that the market in due time will make a correct valuation of the situation. Some countries like Greece, Spain and Portugal are trying to hide their problems and hopefully they will be treated like pest burdened third world countries for many years to come. It’s just a matter of time before this house of cards fall together.
Hopefully countires like Ireland and Iceland will be treated better since they have attacked the problem straight on.
The biggest problem with all of this is the way banks are allowed to lend out money. According to the old rules you only need 3000 euros to lend out 1 000 000 euros. Crashes are mandatory in a a system like that since its speeds up inflation and especially on real estate property. The question I want to ask you is why in the hell should we carry the banks when they behaved this recklessly for so many years?
Privatise profits and nationalise losses is what the lenders wants us to go along with.
I’m very right wing when it comes to economics but I’m ashamed how most of these so called right wing leaders/parties have behaved. They have actually done exactly what they usually acuse their nemesis for. If a company makes a bad decision it must be punished for it not getting bail outs. The left wingers at least have an excuse since they have used the normal left wing policies that they usually bring to the table.