November 24, 2012

States and Banks Locked in Bad Bargain

Stefan Kaiser, Der Spiegel

AP Photo

States and banks have made a deal with the devil. Banks buy the sovereign bonds needed to prop states up in the tacit understanding that the states will bail them out in a pinch. But experts warn that this symbiotic arrangement might be putting the entire financial system at risk.

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TAGGED: global economy, Eurozone

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