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Mayor Bloomberg Weighs In On Eurozone Debt Crisis

New York City Mayor Michael Bloomberg (file / credit: Spencer T Tucker / Mayor's Office)

New York City Mayor Michael Bloomberg (file / credit: Spencer T Tucker / Mayor’s Office)

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NEW YORK (WCBS 880 / AP) – Asked whether he believes the European debt crisis is headed for a resolution, Mayor Michael Bloomberg expressed skepticism and indicated it’s a wider issue than simply Europe, WCBS 880′s Rich Lamb reports.

WCBS 880′s Rich Lamb On The Story


“Look, every country has similar problems. I think it’s fair to say that most countries, including ours, have been spending money we don’t have and, unfortunately, the day of reckoning is closer, or would appear closer, for a lot of those countries,” said Bloomberg in Queens on Thursday. “A few central banks making loans and buying bonds does not fix the basic problems. The basic problems are not going to be fixed without an awful lot of people getting together and finding ways to do more with less. And in someone cases, it’s going to be painful.”

His Honor warned that America has got to start facing these issues now before they become enormous problems, such as the ones being faced by several European countries.

Asian stock markets soared today after major central banks acted in concert to lower borrowing costs, hoping to prevent a global credit crisis similar to the one that followed the collapse of Lehman Brothers in 2008.

The central banks of Europe, the U.S., Britain, Canada, Japan and Switzerland reduced the rates that banks must pay to borrow dollars in order to make loans cheaper so that banks can continue to operate smoothly.

Separately, China’s central bank also acted to release money for lending and help shore up slowing growth by lowering bank reserve levels for the first time in three years. Analysts say the action late Wednesday signaled a key change in monetary policy.

What do you have to say about the debt crisis? Sound off in the comments section below!

(TM and Copyright 2011 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2011 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)