An entire system of global trade is at risk - Telegraph This guy just doesnt get it. Recapitalization wont work because the root problem to this whole thing is the collapse of mortgage debt related securities and their amplified impact through the use of CDS. This is ine effect an exponentially growing problem that started with Greek banks being threatened with bankruptcy so the Greek government bailed them out. Then the Greek government was put in the red by the growing debt, and so they went to the EMU for a bailout. Now the EMU wants a bailout from the G7, then the G20 with the IMF as a backstop. These idiots dont understand what Einstein said was the most powerful force in the universe; exponential growth. So the choice is either to 1) bail out the banks over and over till every government on the planet is out of money. And then everything collapses, or 2) Let the banks fail, have the government step in and act in the void they leave until other banks can organize to step in in place of the big banks that failed. Europe and the US have been doing 1) with failing results, kicking the can down the road and stealing the wealth from everyone else by eroding the value of the US dollar. But eventually this will collapse through either hyper-inflation from the government running the monetary digital creation apps 24/7 or massive deflation if the government does not attempt to massively soak the world in fiat currency. The 'sweet spot' where it can hit a happy median with neither hyperinflation nor deflation does not exist except int he minds of Keynesians. Iceland took option 2), let the banks take their lumps and now their economy is growing strong all on its own. When will we wake up and choose door number 2?