“European banks have very low levels of capital, meaning they are highly leveraged – having a great deal of debt relative to their equity. They are not in a position to withstand losses on their large portfolios of European government securities if, as seems likely, Greek problems cause a fall in the market price of Spanish, Italian, Belgian, or other euro zone sovereign debt.
The banks convinced themselves – and their regulators – that lending to all these governments was “riskless.” This was the structural mistake at the heart of the euro zone.”
This is a very critical analysis and simple deduction. The global financial situations have to look past the proverbial “finger-in-the-dyck ” solutions . They have to, as this authir has done, get to the core matter and the priority solutions and grapple with the structural matters.
Cities ( wherein over 50% of the world’s population resisde ) are facing an “Infrastructure Deficit ” ie they have crumbling and aged : roads, bridges, transportation systems, sewer , water and utilities and not enough capital allocated to the building and re-building of these critical infrastructure components.