Monday, February 20, 2012

Has Mario Draghi saved the European Union for Now?

Mario Draghi - Wikipedia, the free encyclopedia
Jump to ECB‎: Mario Draghi is an Italian banker and economist who succeeded Jean-Claude Trichet as President of the European Central Bank on 1 ... end quote from Google and Wikipedia.

According to Fareed Zacharia on CNN  it appears that Mario Draghi who is head of the European Central Bank (similar to Ben Bernanke's position at the Fed) has done what the U.S. did through the Fed in 2008 to save us from another Great Depression. He has printed 500 billion euros and lent them to the major banks all over Europe at 1% interest which likely will avoid a liquidity crisis like happened during the Great Depression. So, even though Greece might still default the liquidity crisis likely has been avoided at least for now for most or all European Union Nations. Also, he intends to print another 1 Trillion in Euros in the future to further avoid a future liquidity crisis. In this way the European Union likely will not have to bail out individual European Union nations by helping all the major banks of these nations by loaning them large amounts of Euros. This will also help local economies as this money spreads out through new bank loans in European Union Countries.

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