FOLHA – But why aren’t the financial markets as smooth as they should be after all these guarantees? TRICHET – This is an important issue, despite the fact that central banks and government authorities have taken very important decisions.
The central banks put in place a first line of defence against systemic liquidity threats, and then the governments came with a second line of defence against what I would call systemic solvency threats. At the moment I am speaking, there is a remaining level of tensions that doesn’t take fully into account all the decisions that have been taken.