Liquidity is an immediate issue for the banking system, but the long term issue is solvency caused by the imbalances that have grown, and continue to grow, within the European economy. Deflationary policies that have been pushed onto the periphery are making that worse….
via Europe solves the wrong problem – macrobusiness.com.au | macrobusiness.com.au.
Filed under: UK & Europe Tagged: banks, debt crisis, default, euro-zone, liquidity, solvency, sovereign debt exposure
