Wednesday, October 6, 2010

IMF Calls for Huge New Round of Bank Bailouts

from Washington's Blog
Turmoil in sovereign debt markets necessitating another round of bailouts?

This is amusing, given that it was the last round of bailouts which caused the sovereign debt crisis in the first place.

Specifically, the Bank for International Settlements – often described as a central bank for central banks (BIS) – slammed the failure of the Fed and other central banks to force companies to write off bad debts years ago.

BIS also warned that the Fed and other central banks were simply transferring risk from private banks to governments, which could lead to a sovereign debt crisis. That is what caused the sovereign debt crisis in the first place!
The blogger explores recent statements coming from financial institutions that suggest they will be looking for more bailouts. The financial crises appear to be increasing and it is bloggers like this who can help us understand what is happening.