This so-called crisis is being run by and for banks. They were burned by the credit crunch, by their own reckless lending to a housing bubble and to spendthrift governments. Declaring themselves too big to fail, they demanded policies whose sole virtue was to see their loans secured, at whatever cost to the European economy. They do not want a collapse of even a part of the euro, as that would jeopardise their balance sheets.
The banks are the people who lined up quietly and took their 70% haircut on the Greek bonds.
The banks are the people who have been selling down their sovereign positions and writing off chunks of those they haven\’t sold.
The banks are exactly the people who are causing the bond prices to fall, the yields to soar, as they agree with each other that \”we\’re not buying that shit\”.
The problem is not the banks. It is the politicians desperate to stop the banks doing what they are doing. The banks are acknowledging economic reality and the politicians want to stop them destroying their lovely plan.
This isn\’t about saving the banks. It\’s about saving the reputations of the idiot fucking politicians who designed this dog\’s breakfast of a system.