Dominoes as big as Alps
Monday, February 16th, 2009
Ever hysterically rational, Ambrose Evans-Pritchard writes this morning about European banks’ huge lending overhang to post Communist economies. The headline, “Failure to save East Europe will lead to worldwide meltdown,” seems to suggest there’s some alternative to failure. Sadly, Europe doesn’t have the capital, political will OR the political infrastructure to rescue either the west European banks or East European folks who have borrowed absurd amounts of money valued in other countries’ potentially much stronger currencies.