From ArabianMoney.net:
The Governor of the Bank of England Sir Mervyn King is warning that governments have still not addressed the fundamental issue of overspending which lies at the root of the financial crisis. Nations have been living beyond their means on borrowed money for too long.
In a speech in Liverpool last night the governor said action by eurozone leaders this weekend would only ‘buy time’ but added, ‘So far, that time has not been used to deal with the underlying imbalances, or the weaknesses in bank and sovereign balance sheets. Time is running out.’
Another stop-gap?
There is mounting expectation in financial markets that a meeting of EU leaders this weekend will reach agreement on a bailout deal for the banking sector and final solution for Greece. But sovereign debts continue to rise with the West borrowing from the East to finance a lifestyle now beyond its means.
‘Without a rebalancing of spending in the world economy, a struggle between debtor and creditor countries will inflict economic pain on everyone,’ Sir Meryvn noted. ‘We must use the gravity of the global crisis to provoke a bold response.’.......read on
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