STOCK MARKET WATCH -- Tuesday, 5 June 2012

[bread_and_roses]

45. Re: Spain - US economist says "We know how to fix ... a banking crisis"

Last edited Tue Jun 5, 2012, 12:21 PM - Edit history (1)

My response to that is "Huh? we do?" Unless he means "we know how to keep the money in the pockets of the 1% I haven't noticed that we've "fixed" much of anything of our "banking crisis."

http://www.npr.org/2012/06/04/154305936/economic-crisis-looms-larger-in-spain-than-greece

Economic Crisis Looms Larger In Spain Than Greece

Spain may be the most problematic country in the Eurozone at the moment. Recession is deepening in the European Union's fourth-largest economy, borrowing costs are soaring and banks find themselves in ever more turbulent waters. Robert Siegel talks with Fred Bergsten, director of the Peterson Institute for International Economics, about how Spain found itself in this mess, and what the consequences are for the rest of Europe.

... SIEGEL: Greece is often faulted for running recklessly high budget deficits, even misrepresenting its economics situation to its European partners. Spain very different, I gather.

BERGSTEN: Spain is a very different kettle of fish. ... Spain has one big problem. It had a banking crisis due to a housing bubble burst, the same as in the United States and on a smaller scale in Ireland. It's got to fix its banks. Doing that will cost the government some money, which will add to its budget problem. But it's first, foremost and almost in totality a banking crisis. And we know how to fix those.

... Their problems are really focused on the banking sector, and that's why a financial rescue is the answer to their difficulties.

Now, I freely admit to being an ignoramus. I don't understand even half of what is discussed in this thread every day. I don't understand the international picture. BUT - what I do understand is that in every case a "financial rescue" had come out of the 99%'s pockets and the burden is on the 99%'s back while the 1%ers get a "rescue." We're left with unemployment, even worse wages, slashed education, slashed health care, foreclosed upon, homeless, our elders impoverished, our youth crushed by debt and joblessness ....

And then THAT's called a "fix" - saved! - while the 1% keep eating the world. Some fix.

edit because i forgot the "..." in the title