If the EU had credit cards, the recent creative accounting done to buy time for the Eurozone would be akin to using your visa to pay your mastercard, then using your amex to pay your bills.
The ultimate goal for all of this was to bring down the borrowing costs for both Spain and Italy, and to keep them from getting shut out of the credit markets.
The latest strategic move uses the blocs bailout funds to recapitalize the struggling banks, but does nothing to solve the debt issues. This merely picks up where the ECB left off when they stopped buying bonds last year, but this time around the purchases really do need to be much larger.
Jim Rodgers gives his take on the whole situation in a recent interview…watch it by clicking on the link below.