European Union

Pure prudence. They then created this bubble, origin of the crisis, and now stifle the economy. But you have to rescue them, because otherwise, everything collapses. Isn’t it? The Nobel Prize in economics Paul Krugman denounces plans to rescue the banking system are bitter socialism: taxpayers pay the Bill if things go wrong, but shareholders and executives receive the benefits if things go well. And he recalled that the capital increases are selling shares to investors in return participate in the ownership of the Bank. That when Governments expand capital of banks (that are monumental bailouts) rescued banks do not give the part of property corresponding to the money given by Governments? Perhaps the answer is in the never proven myth that the public finance is poor and bad.

That does sound like a joke, given that the current economic disaster a few thousand incompetent have caused it (when not worse) banking and financial executives and senior executives of United States and the European Union. Private managers who have made them lose more than one billion euros in a few years are better?, Paul Krugman wondered. In the aggravation of the crisis and setting us in the drought of credit, banks have ceased their own role: instead of giving fuel to the economy, virtually steal the fuel that remains in the same, Juan Torres has denounced. And it has riveted while not take steps to put an end to the cause of the evils it is impossible to avoid the economy is despene precipitously. What measures? That Governments are not limited to give more money to the banks. Perhaps they should, even temporarily, to make them with financial springs and put them at the service of companies and consumers. Directly. Because, with what we know now of banking, bankers and their responsibilities on both sides of the Atlantic, it seems suicidal to instruct the arsonists who turned off the fire.