"The Great EU Debt Write Off": from Mark Wadsworth today, oodles of commonsense..."if you took all banks as a whole and netted off inter-bank payables/receivables, their balance sheet total would shrink by two-thirds." The blogpost refers to the EUdebtwriteoff website that presents the results of a simulation by the ESCP Europe Business School: there are some "astounding" results if EU countries attempted to cross cancel debt obligations, e.g.
"Six countries – Ireland, Italy, Spain, Britain, France and Germany – can write off more than 50% of their outstanding debt"
3 comments:
Ta for link. It's time to strip the banking emperors of their new clothes.
I agree entirely Mark but will anything happen?...all the politicians are useless, shit scared or too "involved".
The netting off is such a simple idea and is used in accountancy where you have a group of companies producing a consolidated set of accounts (okay wake up now). It should work in the EU and I think it's certainly something that should be looked into beyond the realms of a theory.
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