Billions for banks useless

The stock markets reacted positively on Thursday to the proposal from Berlin and Brussels to recapitalise the European banks. It's just unfortunate that it's still not clear where the 200 billion euro the IMF estimates will be necessary for the operation will come from, the liberal daily Corriere del Ticino writes mockingly: "Because the rescue can hardly be financed on the markets the states will have to fork out the money either directly or via the bailout fund. The operation will increase the gaps in the budgets of many states and raise the risk premium on their government bonds. The problem of excessive sovereign debt can only be resolved with a debt restructuring. Of course, economic growth would be better but that is precisely what is lacking both in Europe and the US. The proposal to recapitalise is therefore not a free decision but an emergency solution and looks very much like the approaches that were adopted shortly before Lehman Brothers went bankrupt. A quick measure that costs billions and rather than helping to overcome the crisis only helps to gain some time."

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