The modern European bankocracy and the doom loop

Not excessive government spending but excessive bank lending lies at the root of the eurozone crisis. Here’s why the bankers, not the people, should pay.

What the Spanish and Cypriot bailouts tell us, therefore, are three things: first of all, the euro crisis originated not with excessive government spending but with excessive bank lending, and therefore was always a banking crisis to begin with; secondly, the doom loop of state and bank insolvency is now in full motion, threatening to push the entire financial system over the precipice; and thirdly, as long as this doom loop continues, the people will be made to foot the bill for the financial disasters of democratic capitalism.


Read also:  The Doom Loop

When Bankers Rule the World

Demystifying the Financial Sector


About Giorgio Bertini

Director at Learning Change Project - Research on society, culture, art, neuroscience, cognition, critical thinking, intelligence, creativity, autopoiesis, self-organization, rhizomes, complexity, systems, networks, leadership, sustainability, thinkers, futures ++
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