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Men blamed for the banking sector is responsible lending policies, and involvement in the game of speculation led to the collapse of the economies of countries such as Ireland, Latvia, and the flooding of other countries such as Spain and Portugal in deep trouble.
For politicians, because they did not Falamon financial policies place more emphasis seemed to vow real estate bubble and worsening external deficit and economic chaos.
Now that the real estate bubble exploded and collapsed housing market, and the subsequent collapse of the banking and financial crisis and the worsening unemployment claims began to punish the "wicked criminals."
Serious errorsHowever, this "mental exercise" misses the point, it is clear that politicians and bankers have committed serious errors contributed to the outbreak of the current crisis.
But regardless of how bad the European leaders at both the political and financial, it does not provide a reasonable and acceptable explanation of the crisis. Until recently, leaders were Ireland, Latvia, admired a large, but an enemy role models before they turned into a scapegoat.
Instead, Allawm, is the responsibility of those who knew (or ought to know them) in controlling the risk of default interest rates in countries in crisis.
We all know that lower interest rates result in a massive expansion in the lending market.This flood of loan demand-driven financial measures do not stop herself. Even trying to do this not only in vain to express.
The bitter truth that the system established by the European Monetary Union is the one who paved the way for the emergence of the risks of borrowing for expansion in the peripheral countries in the euro area.
To blame?Therefore Valmlamon mainly by the authors of this system, or those who saw the problems manifest themselves did not bother to comment warning bells.
The dream of European unity lured some selflessly to maintain silence on the euro as perhaps the greatest achievements of Europe for centuries, but today's woken to the existential crisis threatening its existence.
Ignore these risks and exaggerating the benefits of the euro to remain standing on his feet are close to annihilate it. Holders to be held accountable for this determination dark of the euro are those who tolerated and even encouraged countries such as Latvia to commit excesses serious financial, Day made the adoption of the euro a condition for membership in the European Union, and began promoting these financial excesses will lead ultimately to economic growth and welfare of the community.
Every economy needs a "officer" regulates "the rhythm of the game when the chaos and violate its laws," and this is the task of independent central banks, and this made the independence of the banks (for interventions politicians) in the heart of the "European Convention". But this independence absent from the laws that established for monetary union.
Small states in the euro area - especially those located in the limbs and suffering from a weak association with economic monetary union for Europe - are now subject to uncontrollable economic and inflation in prices, at the time I lost the ability to control interest rates. Not in the "European Convention" text addresses this serious defect, but this Sterta crisis in the body of the continent is a long period.
Lev Patrwski: banker and former Minister of Sweden.
Source: Project Syndicate