It’s like 2008 all over again. We never seem to learn that bailing out banks won’t resolve the actual problems in the global economy. According to Bloomberg, Angela Merkel has vowed to do “everything necessary” to ensure we don’t repeat Lehman Brothers:
U.S. stock futures gained, indicating the Standard & Poor’s 500 Index will extend last week’s rally, after German Chancellor Angela Merkel said European leaders will do “everything necessary” to ensure that banks have adequate capital.
Merkel joined French President Nicolas Sarkozy to persuade investors they can stamp out the debt crisis roiling global markets. At a joint press conference in Berlin, Sarkozy set a Nov. 3 deadline for a response that addresses the immediate crisis in Greece and what he called the structural defects in the 17-nation euro area. No details were provided.
So, we’re going to commit to bailout the banks, but we won’t actually commit to fixing the flaw inherent in the EMU that is actually causing the crisis to begin with? Baffling to say the least….