Wednesday, September 21, 2011

''Sliding toward financial crisis'' by STELLA DAWSON

''..* On bank solvency, the issue is trickier. Europeans sharply disagree with U.S. officials and the International Monetary Fund that their banks need more capital. The IMF has estimated a 200 billion-euro shortfall, a number that may be revisited in an IMF report this week. If EU officials agree to flexible usage of the EFSF, they could recapitalize the banks quickly.

* On sovereign solvency, governments continue to make progress, albeit slow, in reducing budget deficits. Italy last week adopted a plan for a balanced budget by 2013. In the United States, President Barack Obama on Monday lays out his preferred course for medium-term deficit reduction..''

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