Final Word from Tuesday, October 7, 2008
Never in recent history has the stability of the world banking system been such a game of confidence. It's for this reason that several EU governments have issued full government guarantees on private deposits. Czech Finance Minister Miroslav Kalousek seemingly understood the importance of maintaining confidence, declaring numerous times in recent days that people shouldn't spread panic. Yet he said in HN today that European politicians have gone mad for issuing deposit guarantees that they wouldn't be able to honor. They simply wouldn't have the money, he said. Kalousek's faculties are the ones now in doubt. By declaring that EU governments wouldn't be able to handle a rush to the bank, he's signalling to Czechs that there is no saving their own deposits if worst comes to worst. Unless Kalousek changes his tune, PM Topolánek might be forced to remove his favorite minister.[Czech Republic Mirek European Union insurance]
Glossary of difficult words
game of confidence - an event or activity that depends for its continued existence on the conviction that it is sound and viable;
faculties - mental powers;
if worst comes to worst - if the most serious or difficult situation arises.;
to change one's tune - to express a different opinion or behave in a different way.