Banks in US created debt time-bombs
Published 12/10/2011 | 08:00
The amount of invective being heaped on European countries in debt is worrying. It is true that the euro project was flawed from the start, but the root of the crisis lies in America.
US banks created the debt time bombs, the securities and derivatives sold across Europe. In 2008, when banks began to implode under their own debts, we - the public - bailed them out.
In the US, Britain and Europe, governments had to borrow money to bail them out. Now it is harder to service those borrowings and the duplicitous credit-rating agencies castigate our governments for doing what was demanded of them by the banks in 2008.
It should also be remembered there are legal moves being made against the banks claiming massive fraud in selling investments they knew to be worthless.
Blaming this country or that, or castigating the EU, is utterly wrong-headed and dangerous.
This remains the crisis of fraudulent private banking debts being taken on to the public books.