A second credit crunch?

6 August 2011

Fears about the solvency of the financially stretched southern eurozone states is making it harder for their banks to borrow, which raises the possibility of a second credit crunch.

Almost four years to the day since the banking crisis and credit crunch, we have a second credit crunch looming on the horizon for southern European banks - which in turn could infect and undermine the ability of northern European banks to borrow.

The SCP analysis of the sovereign debt problem in the eurozone and the US is here.

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