It's Time To Panic: Debate On European Banking Crisis

Some of the most sensible words said about the European banking crisis.

Taken from an interesting roundtable discussion shown on Newsnight.

• Seriously, says Hugh Hendry. It's time to worry. Panic.
  
  "Banks today are refusing to lend to each other. Bank share prices are collapsing. We have no ability to gauge the credit-worthiness of the banking system."
  
  "I say, let's purge this system of its rottenness," recommends Hendry. "Let's take on a recession. It's going to be tough. People are going to lose their jobs."
  
  "The banking sector is responsible for gross folly," he says. The solution is just, "Don't pay them. Don't reward folly."
  
  "We can spread this over 20 years or we can get rid of it over 3 years... You make a mistake, you pay for it." ( Source: here )

( Here's a new nice article on Hugh Hendry, hedge fund manager of Eclectica Management : here on independent.uk )

Do watch the video...