"The Great EU Debt Write Off": from Mark Wadsworth today, oodles of commonsense..."if you took all banks as a whole and netted off inter-bank payables/receivables, their balance sheet total would shrink by two-thirds." The blogpost refers to the EUdebtwriteoff website that presents the results of a simulation by the ESCP Europe Business School: there are some "astounding" results if EU countries attempted to cross cancel debt obligations, e.g.
"Six countries – Ireland, Italy, Spain, Britain, France and Germany – can write off more than 50% of their outstanding debt"
Ta for link. It's time to strip the banking emperors of their new clothes.
ResponderEliminarI agree entirely Mark but will anything happen?...all the politicians are useless, shit scared or too "involved".
ResponderEliminarThe netting off is such a simple idea and is used in accountancy where you have a group of companies producing a consolidated set of accounts (okay wake up now). It should work in the EU and I think it's certainly something that should be looked into beyond the realms of a theory.
ResponderEliminar