Weekly Wrap: On risk and Europe
When you get right down to it, this has been a pretty good week for the economy — risk-wise — both here and over in Europe. That’s actually saying something, given the peril Europe could possibly hold.
In Aspen are New York bureau chief Heidi Moore and John Carney from CNBC.
On the European bailout plan:
Heidi Moore: There is a plan, and it turns out we are the ones that we’ve been waiting for. Europe decided to have a big bank bailout, which they had resisted for a long time, and it was modeled, basically on our TARP. So all we had to do was wait four years for history to cycle in our advantage.
John Carney: We are done for a few days, but by Monday, what people are going to see is that there’s a promise, but the promise to bail out the banks is based on a lot of contingencies, a lot of things that have to be agreed upon that are not yet agreed upon — like a bank supervisor. They’re going to create an entirely new regulatory apparatus before they will do the bank bailout. I mean, we’ve seen how long it’s taken to implement Dodd-Frank here, and we already had the regulators. They want to create entire new ones — it’s not going to happen quickly, and it might not happen quick enough.
For more analysis, listen to the full audio.
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