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Europe adds to Bank Plans in Bid to Blunt Likely Recession

By David Gauthier-Villars and Leila Abboud in Paris, Sara Schaefer Munoz in London, and Mike Esterl in Frankfurt

Some European governments are looking at going beyond government aid to banks to help businesses, in an effort to inject money directly into the economy as lending remains stagnant and a continent-wide recession looms.

Italy’s government said Tuesday it was working on a package of economic-stimulus measures that could include guaranteeing corporate debt, a move that could give distressed Italian companies a new advantage over rivals elsewhere — and if enacted could set off a new round of cross-border competition, or complaints, about national aid.

Sounds highly inflationary, if the Italian guarantee is worth anything in the credit markets.

French President Nicolas Sarkozy called for the creation of sovereign-wealth funds to defend big companies from being bought up by non-Europeans at bargain prices, and proposed an “economic government” to coordinate euro-zone economic policy.

Also sounds highly inflationary as well as operationally problematic.

No talk of giving the euro parliament the fiscal authority to (deficit) spend their way out of the mess they have created.


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2 Responses

  1. “French President Nicolas Sarkozy called for the creation of sovereign-wealth funds to defend big companies from being bought up by non-Europeans at bargain prices”

    Bhagwati at the CFR won’t like this – it defeats their globalist purpose – how can we have one new world order if all these nation states won’t play ball? Why do citizens in these various nation states care that some global megacorp can exist outside the boundaries of any one nation-state – beyond the long arm of the law of any nation state? Certainly mercenary armies that exist only for profit are better at enforcing global agenda’s than patriotic nation-state militaries. Can’t the stilly joe 6 packs see the benefit of being part of one large borg collective?12

  2. My grandma walked into waffle house, the food sucked, so she decided to vote with her bowling score and not pay the bill for the sorry food – the police state locked her up – how can capitalists societies work if police lock up people who decide not to pay for crappy service? This whole system is so broken and this titanic is going down – pathetic. Your tax dollars at work Warren – ugg.

    http://www.baynews9.com/content/36/2008/10/22/394615.html

    By The Associated Press
    FORT PIERCE, Fla. (AP) — A woman has been charged after choosing jail rather than paying her tab for $7.45 at a central Florida restaurant.

    According to a police report, Maryanne O’Neill, 66, ordered coffee and a sandwich at a Waffle House restaurant on Saturday but refused to pay the bill. The restaurant called the police.

    A police officer asked O’Neill to pay or go to jail and she refused to pay

    O’Neill could not be reached for comment at any listed phone number.

    A jail official says she was released Monday from the St. Lucie County Jail. She is charged with obtaining food or lodging with intent to defraud, a second degree misdemeanor. If convicted of a second degree misdemeanor she could face up to 60 days in jail and a fine of $500.

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