(Stephen Cook: Yep, that is the newspaper’s headline. But if you read further into this story you’ll see a ‘Robin Hood’-style rescue package is now being suggested; in this case, where the richer countries come to the aid of the poorer ones in an attempt to even things out. Sounds like a far more balanced approach as we proceed through today’s Solstice… still not ‘debt forgiveness’ but certainly edging closer… I hope.)
Debt crisis: Prepare for Lehmans re-run, UK Bank official warns, as leaders poised to bail out Spain and Italy
European leaders are poised to use two rescue funds to buy Spanish and Italian debts in a £600bn bail-out, as a Bank of England policy maker tells traders to prepare for a devastating market seizure like that seen as the collapse of Lehman Brothers.
Cheap and ready access to the liquid assets that oil the financial markets are under threat from both state-imposed capital controls and flagging confidence in the euro, said Robert Jenkins, a member of the Bank’s Financial Policy Committee.