By Ryan Matthew Dernick
As the Eurozone continues to teeter at the edge of the precipice of an artificialized debt cliff, one can only wonder if the 100billion dollar
bailout that Spain just received actually will help them. Spain now joins Greece, Ireland and Portugal as the fourth EU country to ask for a bailout. So far, the EU and IMF have doled out over 500 billion euros to shore up debt-stricken member states.
Will the systemic present state of the Eurozone improve? So far it doesn’t seem promising, because June is the fifth consecutive month activity across the 17-nation bloc has declined, dragging down heavyweights Germany and France and likely increasing calls for the European Central Bank to take action to support the economy. Collapsing banks are not the worry in Germany but inflation of currency could hit Angela Merkel’s country moving German’s to invest in real estate.
In Europe’s most economically stricken countries, people are taking their money out of their banks as a way to protect their savings from the continent’s growing financial turmoil. Concerned that their savings could be devalued by a Bank Holiday, or that banks are on the verge of collapse and that governments cannot make good on deposit insurance, people in Greece, Spain and beyond are taking their money out of the Banks by the billions.
The looming fears of Greece exiting from the euro zone relaxed after pro-bailout parties loyal to the banks took weekend elections, though risks are increasing with Spain, the euro zone’s fourth-largest economy, will need a full blown international rescue.
An unfolding two-and-a-half year old crisis has slowed the global economy, and world leaders meeting in Mexico pressed on the euro zone to move towards a fiscal and banking union to fix the crisis that now threatens to overtake Spain.
In Europe, the United States and elsewhere we need to break the walls of ignorance and liberate “We the People” from a selfishly myopic selected few. Is it the purported Too Big to Go to Jail or is it Too Big to Fail? Similar to the ratcheting up of proposed austerity measures through bailouts in the Eurozone.
Lets not forget Jon Corzine White House Economic Adviser, former Governor of New Jersey and CEO of once M.F. Global a sub investment banking company of Jamie Dimon‘s JP Morgan. Corzine lost 1.4 billion dollars of peoples money from their segregated accounts late last year then Dimon lost almost 3 billion recently this year when the credit markets were supposedly stable. Both were met with questioning but nothing resulted from any questioning.
It would be economically prudent to reinstate The Glass Steagall Act here in the U.S., which was put in place by Franklin Delano Roosevelt after the last Great Depression in the early 20th Century to stop banks from insider trading via derivatives but was then reversed by the Clinton Administration in 1999 prior to the 2008 onset of the present recession. Is this irony or another global corporate takeover? This is not a partisan issue, or a national issue but a global issue that traverses any and all political ideologies. There needs to be more transparency on behalf of the international banking community and actual consequences for malfeasant banking practices.