Global Banking Crisis: Stuffing the goose strategy - - Prof Hans-Werner Sinn
Apr 3rd, 2009 | By Finfacts Ireland Business & Finance Portal | Category: News worldwide
Global Banking Crisis: The US banking system is bankrupt and is to be rescued with state money. Western Europe's banks are limping. In Eastern Europe a time bomb is ticking. And all this just because banks, hedge funds, special purpose vehicles, investment funds and real-estate financers were allowed to conduct their business with only tiny amounts of equity capital. Without equity there is no liability, and without liability people gamble. They hunt for risks wherever they can find them because they can privatise profits and socialise the losses. Now the jungle is burning and no one knows how to put out the fire.
