European Commission Proposing Direct Bank Bailouts

Rev 6:5,6 NCV When the Lamb opened the third seal, I heard the third living creature say, "Come!" I looked, and there before me was a black horse, and its rider held a pair of scales in his hand. Then I heard something that sounded like a voice coming from the middle of the four living creatures. The voice said, "A quart of wheat for a day's pay, and three quarts of barley for a day's pay, and do not damage the olive oil and wine!"

<blockquote>“Against all odds, the frameworks of the world’s economic, political, and social systems are being shaken and are beginning to crumble.”
<p style="text-align: right;">-Jim Bakker in “Prosperity and the Coming Apocalypse”</p>

Amid concerns about looming bank failures in Spain, the European Commission is proposing providing bailout funds to banks directly rather than going through individual governments.

Commission head Jose Manuel Barroso cited the need for flexibility and speed in sending the funds directlyto banks. Also being placed on the table is a debate about creating a “banking union” similar to the Euro Zone.

“The economic situation in the euro area has deteriorated significantly over the last year,” the Commission said in its report. “Growth differences among the euro area member states are expected to persist.”

In July, the region’s permanent bailout fund, the European Stability Mechanism, begins operations. The fund would provide money to ailing governments but has nothing in place to directly help banks that are in danger of insolvency. The Commission is recommending another policy that create a fund similar to the ESM but can be used to directly aid flagging banks.

The Commission also appeared to be leaning toward issuance of “Eurobonds” which would be issued by all 17 countries in the euro zone and dividing the debt evenly between the nations.


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