Monday, October 10, 2011
Most Horror movies usually have an ending…unless it’s a Freddy Krueger sequel…..
You know something bad is going to happen in a horror film when someone decides to take a late-night stroll in a forest. The equivalent in finance is a bank boss insisting that his institution is completely solid. In 2008 governments were credible backstops for their banks and the Fed, the central bank at the heart of the crisis, was willing to do everything it could to create confidence. Now the sovereigns are the problem and the ECBâ€™s help is limited and conditional. That is the real horror film.