Thursday, January 10, 2013 – By Staff Report
Euro-Crisis Hope Confidence in European Banks Is Returning … There is cause for hope in Southern Europe. New numbers indicate that trust is returning to banks located in countries that have been hit hardest by the euro crisis. But even as discrepencies in the Continent’s Target2 payment system shrink, danger still lurks. The turning point came almost exactly four months ago. On Sept. 6, 2012, 22 men gathered on the 36th floor of the European Central Bank building in Frankfurt to reach a momentous decision on the Continent’s common currency. The euro, said ECB President Mario Draghi at the press conference following the meeting, is “irreversible.” To save it, he added, his bank would undertake unlimited purchases of sovereign bonds should it become necessary. – Der Spiegel
Dominant Social Theme: The problems are over now. Good thing the EU foundered.
Free-Market Analysis: We are suspicious of this sudden discovery that the European crisis has lessened. Der Spiegel, an elite mouthpiece if there ever was one, is virtually announcing it.
But here is what inquiring minds want to know: Is the article accurate? And why would Der Spiegel‘s editors want to announce such positive news now?
Bear with us, dear reader, as we try to explain.