How to solve the crisis

When you owe the bank a little then it’s your problem. when you owe them a lot, it’s theirs!

Bank balance sheets (I am trying to find the total) in the EU are many times the size of the EU GDP. In other words banks in the EU have lent many times the GDP of the EU. Wow! How did that happen? That’s another story. Meanwhile these banks have on their books a huge volume of poor loans that are worth less than the banks say they are. The only reason that these loans are not written down further is that there are either no markets for these loans, therefore no clear way of valuing them.

The problem is the banks lent too much. the solution is that they go bust – put them into administration and nationalise the commercial banking networks. This is the only solution – this is what we do with over-indebted companies – they shoot horses don’t they?

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