GlassSteagallfan
3rd June 2012, 22:15
Zoellick and Draghi Admit: It's Over
June 3, 2012 • 8:18AM
The heads of two of the leading financial institutions have candidly admitted that the entire trans-Atlantic financial system is doomed in the very short term, unless something radical is done. Robert Zoellick, who leaves his post as President of the World Bank at the end of June, penned an oped in the Financial Times on Thursday, May 31, in which he frankly admitted that the European system was at a break point, and that if Greece were to leave the euro, there is no way to contain the contagion.
"While those living in the euro-zone building, especially those on the executive floors, will not want to hear an alarm, they had best read the instructions. Events in Greece could trigger financial fright in Spain, Italy and across the euro zone, pushing Europe into a danger zone," Zoellick wrote. "If Greece leaves the euro-zone, the contagion is impossible to predict, just as Lehman (Brothers collapse) had unexpected consequences."
Zoellick wrote that Europe "may be nearing a 'break the glass' moment: when one smashes the pane protecting the emergency fire alarm," warning, "If a crisis does occur, the European Central Bank may not have the ability to respond fast, fully, and forcefully because of differences on the bank's board."
Read the rest here (http://larouchepac.com/node/22907)
Sign the Glass-Steagall petition by Elizabeth Warren here (http://act.boldprogressives.org/sign/sign_glasssteagall/?source=bp)
June 3, 2012 • 8:18AM
The heads of two of the leading financial institutions have candidly admitted that the entire trans-Atlantic financial system is doomed in the very short term, unless something radical is done. Robert Zoellick, who leaves his post as President of the World Bank at the end of June, penned an oped in the Financial Times on Thursday, May 31, in which he frankly admitted that the European system was at a break point, and that if Greece were to leave the euro, there is no way to contain the contagion.
"While those living in the euro-zone building, especially those on the executive floors, will not want to hear an alarm, they had best read the instructions. Events in Greece could trigger financial fright in Spain, Italy and across the euro zone, pushing Europe into a danger zone," Zoellick wrote. "If Greece leaves the euro-zone, the contagion is impossible to predict, just as Lehman (Brothers collapse) had unexpected consequences."
Zoellick wrote that Europe "may be nearing a 'break the glass' moment: when one smashes the pane protecting the emergency fire alarm," warning, "If a crisis does occur, the European Central Bank may not have the ability to respond fast, fully, and forcefully because of differences on the bank's board."
Read the rest here (http://larouchepac.com/node/22907)
Sign the Glass-Steagall petition by Elizabeth Warren here (http://act.boldprogressives.org/sign/sign_glasssteagall/?source=bp)