Comments on: This Morning’s Papes http://jaredbernsteinblog.com/this-morning%e2%80%99s-papes-2/ Facts, Thoughts, and Commentary Tue, 21 May 2013 17:19:09 +0000 hourly 1 By: David http://jaredbernsteinblog.com/this-morning%e2%80%99s-papes-2/#comment-248643 David Wed, 25 Jul 2012 12:01:10 +0000 http://jaredbernsteinblog.com/?p=5913#comment-248643 In Europe, its worse than “no follow-through.” Its been announced that while there will be lending directly to banks from the common fund, the loans must be guaranteed by the sovereigns. So they haven’t really decoupled the sovereign debt crisis from the banking crisis at all. It’s just moving around the deck chairs while the ship is sinking.

I think all of the senior politicians are now expecting Greece to exit the Euro. When that happens, there will be a massive bank run in the periphery. If you had money in Spanish banks, would you keep it there? Neither would I.

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