European Central Bank policymakers said on Monday that officials of the euro zone are working for magnifying the firepower of the region’s rescue fund.
On the other hand, U.S. President Barack Obama piled pressure on Europe for staunching a sovereign debt crisis that threatens the world economy.
From in.finance.yahoo.com:
Obama, saying the crisis “is scaring the world,” urged leaders of the 17-nation euro zone to act quickly to help a region where banks have not fully recovered from the 2008 financial crisis and which is now suffering from the Greek government’s debt crisis.
“They are trying to take responsible actions but those actions haven’t been quite as quick as they need to be,” Obama told a citizens’ meeting in Mountain View, California.
After meeting at the IMF/World Bank and G20 meetings in Washington D.C. last week, European policymakers said on Monday they are working on ways to shore up the euro zone financial system and prevent the region’s government debt crisis from spreading, but their mixed messages on the size of a rescue fund and the role of the ECB underscored the difficulties for 17 euro-zone nations in reaching consensus.
“I know that people are thinking about these things. They may not be willing to admit it in the public, but they are thinking about these things,” ECB Executive Board member Lorenzo Bini Smaghi said, citing the example of two U.S. programs used to recapitalize banks in the 2008-09 financial crisis.

October 18th, 2011
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