The head of the European Central Bank said Friday that central banks were ready to step in to address any financial market turmoil that might result from elections in Greece this weekend that could help to decide the future of the euro.
“The Eurosystem will continue to supply liquidity to solvent banks where needed,” Mario Draghi told a group of economists in Frankfurt.
His remarks were a reminder that European officials are increasingly intent on putting in place long-term structures that would make emergencies like Greece and Spain less likely to occur in the future.
Central banks in non-euro countries are also making contingency plans and reinforcing their defenses against spillover from the crisis in currency zone.
They will continue to supply liquidity to solvent banks. What about the insolvent ones? In other words all of the Too Big To Fails? What about them? Huh? Huh?
– Lee Adler