Interesting thoughts from Arnold Kling on the Euro Crisis (which he believes is a misnomer). A snippet:
My view of the bailouts is that they are primarily to save French and German banks. All the talk about "saving the Euro" is a smokescreen.
I find it ironic to have an EU official warning about the collapse of democracy. The eurocracy is a very undemocratic organization, chronically in conflict with popular opinion. The bailouts are unpopular, and quite properly so. Any official who claims that that the bailouts should be undertaken in the name of democracy is a poseur.
Showing posts with label Bailouts. Show all posts
Showing posts with label Bailouts. Show all posts
I Must Be Missing Something...
I know I'm oversimplifying it, and I'm sure Rob will correct me, or at least clarify some stuff, in the comments section, but is this situation really expected to be solved with more debt? Or is it just to buy time? Or is there another answer?
In my eyes, the bailout is a signal is investors, traders, speculators, whomever, that the eurozone will survive and become stable. And tt was a strong signal, just look at yesterday's equities performance.
But does it change anything fundamentally? Or is this thing just a really, really big Band-Aid for a patient with terminal cancer? Is painful chemo (revamping of fiscal austerity measures) the only real solution? (sorry for the horrible analogy).
It's way too early to tell.
In my eyes, the bailout is a signal is investors, traders, speculators, whomever, that the eurozone will survive and become stable. And tt was a strong signal, just look at yesterday's equities performance.
But does it change anything fundamentally? Or is this thing just a really, really big Band-Aid for a patient with terminal cancer? Is painful chemo (revamping of fiscal austerity measures) the only real solution? (sorry for the horrible analogy).
It's way too early to tell.
Tick, Tick, Tick...
Tyler Cowen lists twelve points on the Euro bailout, linking to some other sophisticated writers in the process.
Today is going to be a great day for equities, but I'm definitely bearish long-term on this move. I think Cowen's last point is his best:
12. How much time has the EU bought itself?
And that's the $64,000 question.
Today is going to be a great day for equities, but I'm definitely bearish long-term on this move. I think Cowen's last point is his best:
12. How much time has the EU bought itself?
And that's the $64,000 question.
Bailouts that Beget Bailouts
Has capitalism, true free-market capitalism, ever been allowed to flourish in history? Probably not, on a major scale. But I can say with near certainty that crony capitalism has become more entrenched in the international economy than ever before.
Read the Sorkin article. This would be funny if it wasn't so scary.
Read the Sorkin article. This would be funny if it wasn't so scary.
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