Agreed!
They are risking the solvency of the national governments.
The national governments are beyond the point where they can write the check should any of their major banks be declared insolvent.
Trichet Says Rising Deficits are ‘Problem,’ Osnabruecker Reports
by Matthew Brockett
Feb 12 (Bloomberg) — European Central Bank President Jean-Claude Trichet said rising budget deficits in the euro region are an “important problem” and urged governments to respect the Stability and Growth Pact, the Neue Osnabruecker Zeitung reported, citing an interview.
Trichet also said the situation in the banking sector remains “difficult” and should be monitored closely by governments and central banks, the newspaper reported on its Web site today. Measures such as so-called bad banks should be competition neutral, Trichet said, according to Neue Osnabruecker.
[top]