Dec. 14 (Bloomberg) -- The euro crisis threatening the
global economy is not about countries going broke. It’s not even
about saving the euro. It’s about saving the banks, for the
second time in three years.
The banks need saving not because they bought toxic assets
such as subprime mortgages or the government debts of Greece,
Ireland, Italy, Portugal or Spain, and not because they are too
large, overrated or under-regulated. They are in trouble because
they bought risky securities with other people’s money, and they
have to pay it back. They borrowed to gamble, lost yet another
fortune and are facing a massive run.