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The doom loop is back: Europe’s banks are still buying more of their governments’ debts

JUNE 22, 2016 | by Tim Wallace | THE TELEGRAPH (UK)

By Tim Wallace, includes "Europe’s banks are still buying more of their home governments’ bonds, even though the enormous exposures between states and financial institutions risk re-starting the so-called ‘doom loop’ that damaged the Greek economy so badly. … When banks invest heavily in one government’s debt, the banks become dependent on the government’s good performance, and the governments depend on the banks purchasing the debt…"

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