Ambrose Evans-Pritchard: Europe Is About To Experience 1931 All Over Again

ambrose evans pritchard

For your Sunday night reading pleasure, there’s a new Ambrose Evans-Pritchard arguing that it’s the ECB, not the US Federal Reserve, that really needs to crank up the government bond buying.

The Telegraph:

If mishandled, Ireland could all too easily become a sovereign version of Credit Anstalt – the Austrian bank that brought down the central European financial system in 1931, sent tremors through London and New York, and set off the second deeper phase of the Great Depression, the phase when politics turned ugly.

“Does the ECB understand the concept of contagion?” asked Jacques Cailloux, chief Europe economist at RBS. Three EMU countries have already been shut out of the capital markets, and footloose foreign creditors hold €2 trillion of debt securities issued by Spain, Portugal, Ireland and Greece.

Gregory White has written about the Credit Anstalt crisis here.

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