From my Deep Dive at FP
Before anything else, the banks must be saved, most likely through an open-ended lending facility like the Federal Reserve’s Term Auction Facility (TAF). They must come before taxpayers, before pensioners, before the reforms that might transform southern Europe into a dynamic player in the global economy.
Not because it is fair or just or right. It is none of these things.
It must happen because we have constructed a global economy that has massive international banks at its heart. Money, banking, and credit lubricate the billions of transactions that happen around the world every day. If the global financial system collapses, so will trade.
Though, I lied. There will be lots of crying.
The series also contains pieces from some lesser known – but still quite good – economists like Barry Eichengreen and Larry Summers.
The whole thing is self-recommending – as in, I am recommending myself. And, I am an excellent judge of character, if I do say so myself.