Germany and France put mountains of cash on the table today as they led continental Europe in an offensive to rebuild trust in banks with state guarantees worth over €1trillion (£780 million). Chancellor Angela Merkel and President Sarkozy, chiefs of the two big euro-zone economies, also joined Gordon Brown in calling for a deep reform of the global financial system after the dust settles from the autumn earthquake. "When calm returns, those who have sinned will be punished," Mr Sarkozy said.
Germany and France put mountains of cash on the table today as they led continental Europe in an offensive to rebuild trust in banks with state guarantees worth over €1trillion (£780 million).
Chancellor Angela Merkel and President Sarkozy, chiefs of the two big euro-zone economies, also joined Gordon Brown in calling for a deep reform of the global financial system after the dust settles from the autumn earthquake.
"When calm returns, those who have sinned will be punished," Mr Sarkozy said.
What is enormously annoying is that the financial sector could be such a runaway parasite on the way up, and even complete nationalisation won't be punishment for that. Bonuses have been paid. Retroactive punitive taxation would be the only way to get back what was looted. "The womb that spawned that thing is fertile yet"
When talking about investing in equity, then yes it is absolutely fair, and indeed a lot could have been done with the same amount of money, and should have been done.
Having said that, in the situation we are in now, I do believe we must prevent a total and uncontrolled financial collapse.
I do hope, though, that the precedent will be used in order to achieve other kinds of state investments. We will need them to kickstart main street. I am very worried, on the other hand, about the impact on critical goals like fighting poverty and preserving the environment. "The womb that spawned that thing is fertile yet"
But alright... You could double the size of the global nuclear power output. :) Peak oil is not an energy crisis. It is a liquid fuel crisis.
