Local view for "http://purl.org/linkedpolitics/eu/plenary/2012-02-14-Speech-2-462-000"
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"en.20120214.21.2-462-000"2
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"Madam President, I am not a financier, I just want to employ some common sense. I would like to ask a question: do any of the proponents of stability bonds recall what the cause of the mortgage crisis was in the US? Financial institutions created packages for investors which included mortgages of varying quality. These collateral bonds were supposed to spread risk in the event of a default on mortgage payments. They came about as a result of a political order in the shape of an endeavour to provide every citizen with a loan for a house, regardless of financial capabilities.
This is no different to what we now call stability bonds. It is a political endeavour to make more loans accessible to those who cannot repay them. Even the strictest financial discipline rules will fail if they are not enforceable. In the case of mortgages, the lender can claw back part of the loan by selling the property. In national sovereign debts this option does not exist. I believe that the risks associated with Eurobonds have not been sufficiently taken into account."@en1
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