The Three Sides of the Crisis

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The eurozone crisis involves at least three problems in one and here is what they are.

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Show 1 Answer (Answer provided by Brandon Davis)
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Hi Toufik,

We do not currently have a downloadable certification but this is being discussed. We
will make an announcement if or when we begin providing them.

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I think you are right but that is the reason why new requirements have been imposed on banks regarding the own capital they need to have, that means not only the money collected from savers, but it's own funding resources

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> Why should a banking crisis cause an economic crisis?

It probebly should not, the question is causality. I dont think its the banking problem causing problem in other areas, I think its the other way around.

> That result seems to be a systemic issue that could be avoided easily without fractional reserve banking

You also loose a lot of potential investment without FRB. That said, if the banking crsis is not the causal factor then there is no problem with FRB

Borrowing money that has not been saved is the very root of the problem. Without money creation, the Eurozone debt situation would not exist.

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