Reuters reported World Bank Chief Robert Zoellick said:
"Europe may be able to muddle through but the risk is rising. There could be a Lehmans moment if things are not properly handled."Zoellick;s advice to developing countries was:
"It will be better if they can avoid piling up short-term debts that can come due in volatile periods and look to the fundamentals of future growth - infrastructure and human capital," he said.
Financing long term assets with short term debt, combined with risky credit wagers, took down Lehman virtually overnight. The monied class no longer trusted one another to make good on their debts (or bets).
Zoellick steps down as World Bank Chief June 30. The question is whether the global elite ordered another crisis or are helpless to stop the system they created that regularly distorts in excess.
