The IMF, which is funded by other sovereign countries, was invented precisely for dealing with problems like the current Eurozone debt debacle. The IMF is the proper lender of last resort to sovereign countries, not the central bank.
Central bank lending to sovereigns often ends in debt monetization and hyperinflation. There are sound reasons behind German stubbornness against turning the ECB into a 'bazooka'.
More on this topic, including why the 'experts' with near unanimity are calling on the ECB rather than the IMF, here.
Hopefully both agencies would work together to achieve a mutual goal. I know I can rely on my loan modification attorney to help with my personal finances, but national and international debt is a much more challenging issue.
ReplyDeleteI hope this problem doesn't balloon into much bigger problems. I wouldn't want uninvolved countries suffering the consequences, too. I have many other concerns, too, like IT contractor mortgages.
ReplyDeleteI like to look at the positive side of things during times like this. Even as controversies like this happen, some are moved to refinance mortgage leads, for example.
ReplyDeleteSimple bad credit auto loans could add up to these debt problems but I believe than putting this on the hands of whoever is really responsible for it would solve the crisis.
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