The problem in Europe, for both banks and governments, is insolvency everywhere one looks. This was brought about by too much debt and too much financial leverage by issuing debt. The only known solutions are (a) default, and (b) printing money to pay off the debts (inflation). Europe is trying to solve the problems by neither method. Their solution, as it has similarly been attempted by the US, is to issue more debt and create more leverage. One means of doing this is to create a new financial intermediary, called the EFSF (European Financial Stability Facility). The Fed also invented … Continue reading Desperate European Financial Tricks