At a recent awards ceremony held at London’s Freemason’s Hall, Larry Fink who is the chief executive of Black Rock stated that what is currently being done about the European debt crisis just isn’t working. He called the quantitative easing that is being fed in increments a failure and states that at least $2 trillion (USD) is needed to make an impact.
Fink states that feeding money in increments is a futile effort and that if there is to be success in turning the debt crisis in the eurozone around then there needs to be a joint effort between governments and private individuals (public and private money) to be infused into the European banking system.
In his speech, at which he was the honouree of the gathering, Fink went on to say that it is the lack of will in the Americans and Europeans that is fuelling all the uncertainty in the business sector. He feels that both the United States and Europe should be much more decisive in their policy and commitment to the debt crisis in Europe. If governments were more decisive, he feels business would turn around and once again there would be movement in the markets – movement in the right direction that is.
If there is to be growth, we need to do something immediate and definitive to promote confidence in Europe’s economic growth but to date that has not been forthcoming. There has been no vision and certainly no clarity of purpose. Fink calls for bold and immediate action by the word’s leaders because people have more respect when leaders act decisively, even if they don’t agree with those actions.
The bottom line is, this atmosphere of uncertainty is creating more problems. Black Rock’s chief executive believes that firm, fast and decisive action would be the once and for all cure.
