smiley wrote:Probably a smart move and the only option to keep the wolves from the door.
The only problem I see is that the banks again get what they want. I can see how oversight of the national budgets might work, the EU has been quite effective in forcing countries into severe austerity programs.
Whether oversight of the banks will ever work, I have my doubts. You cannot regulate what you don't understand, and the financial institutions have been very effective in creating such complicated instruments that nobody understands the risks, even their own auditors.
I would still be more in favor of a banking insurance fund, an stability funded completely by banks. Perhaps if the banks would be forced to pay for the mistakes of their peers it would encourage them to regulate themselves.
There will be a banking union,which will pay for banks that need to be bailed out, and also EU wide guarantee savings (to x amount), etc. So even if a country (like Greece were to leave the EURO, the other banks would still guarantee the Greece bank deposits, alleviating the banking run happening there)
"People should not be afraid of their governments. Governments should be afraid of their people."