Wednesday, May 19, 2010

FOXNews.com - Trillion-dollar euro rescue plan offers short-term relief, stores up longer-term problems

FOXNews.com - Trillion-dollar euro rescue plan offers short-term relief, stores up longer-term problems: "Still, the package did not resolve the basic dysfunction at the heart of Europe's monetary union: Governments can still spend recklessly and saddle their partners with the bill."

Sounds like a good idea -- spend a trillion dollars but don't address the cause!

"But because of the debt crisis, private banks in the U.S. have been leery of making loans to banks in Europe. Hence the need for the currency swaps between the central banks."

So if bankers think it is a bad idea to loan money, then the central banks think it is a good idea? How is that not madness?

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