Advancing a Free Society

The Euro-Financial Crisis and Occupy Wall Street: Gimme, Gimme, Gimme

Friday, October 28, 2011

European leaders hammered together an early morning deal to free Greece of half of its debts.  And they agreed to a new requirement that European banks increase their core capital ratios to 9%.  The hope is that it will add liquidity to the financial system and prevent strains that could lead to a global financial crisis.  The Greek Prime Minister,  Giogios Papandreou is already acting like there is no longer a crisis.  ”The debt is absolutely sustainable now,”  hesaid at a press conference this morning.  These steps are good in that they had injected some confidence into the system. But that confidence should only go so far.  These measures are really just band aids for a serious health problem:  Europe’s cancerous problems with public debt.  I write this from the United States,  where we are afflicted with the same disease.

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