I am sure most of you have heard about the economic crisis which affects most of the European countries and their banks. If you haven't I would suggest you to go and see an otolaryngologist. Recently I read an article on cnbc stating that European banks sell their assets to have the liquidity required for them to fulfill the European Banking Authority's deadline, to raise more than 114 billion euro ($149 billion) in fresh capital until June. Now many companies and investment groups from US seize the opportunity and buy those assets.
In 2008 USA started printing money in order to a) lower the dollar rates b) give a boost to exports c) decrease imports and d) cover debt holes, save banks etc. . They did everything possible to boost growth by just devaluing the dollar. So in other words they had a plan. Now they support their currency buying hard assets from those who refuse to print money. Tell me who is smarter and which of those two strategies would you prefer. Why EU central bank doesn’t follow the same strategy?The same can be applied to countries .Why let bankers and investment groups buy opportunities in Greece, Spain, Portugal, Italy etc. when EU can benefit from them?
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