Building and preserving trust on the credit function

For much of the debate about the Euro crisis and proposals on how to get out of it, I hardly find from any renowned economist any reference about how money and the financial markets work, not least about how banks operate as intermediaries in channeling savings resources to borrowers.

At the end, what is at stake is trust, the very basic foundation of the credit activity. Trust that is not reflected as a component of any GDP index. Trust, above all, is what has been so damaged for so many irresponsible policy makers, bankers , politicians, opinion leaders and mass media, to name but a few actors.

And building and preserving trust is, in mi opinion, the first task that deserves to be undertaken by those in public office, brave enough to challenge old paradigms and ideologies that fail to address our times and our needs as European citizens.

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