Edward Harrison of Credit Writedowns.
I was on BNN this afternoon talking about the Fed running out of ammo, America banks getting downgraded, European banks needing $300 billion in capital, and Greece defaulting on its debt obligations plus a host of other issues – none of them good.
This is uncharted territory. Developed nations have never defaulted. All the action by the Fed, Obama, and the Eurozone ministers has accomplished little but to kick the can down the road a bit. The underlying causes – bankster greed and compliant governments – have not been addressed. The banks have not been reformed and no one of consequence has gone to prison.
The answer is that the various nations default on their debt and let the insolvent banks fail. Only then can financial health begin to be restored to the world economy.