Boom to Bust | Property Collapse | Jean-Claude Trichet | Mick Wallace

Boom to Bust | Property Collapse | Jean-Claude Trichet | Mick Wallace

The continued crisis in the eurozone was only getting worse. The property markets in Spain and Ireland collapsed as the economy went from boom to bust.

Now, when banks can’t borrow, they can’t land and, in the worst-case, they find it hard to repay their debts and they go bust. The eurozone was facing a full-scale, potentially devastating, banking crisis.

Banking Crisis | Bank Rescue Plan | David McWilliams | Benoit Coeuré

Banking Crisis | Bank Rescue Plan | David McWilliams | Benoit Coeuré

You know the economy is in trouble when a €1 trillion loan is considered little more than a sticking-plaster for the banking crisis.

By injecting €1 trillion into failing European banks, the ECB was putting an enormous sticking plaster on the haemorrhaging eurozone. But even the ECB admits that the loans do no more than by time for a proper cure to be found.

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