Tom Ferguson: “This is really a backdoor bank bailout”

Tom Ferguson gives a comprehensive view of the politics of the European sovereign debt crisis. He explains its all about the banks and their unwillingness to take a haircut.

On Friday, we will see who fails the stress tests. One failure is certain, Helaba, a German bank which doesn’t want to reveal the extent of its undercapitalisation. Expect almost 20 more to fail.

The clip runs nine minutes.

austeritydefaultEuropeGreeceItalyPoliticssovereign debt crisis