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« NOTD | Main | Debating the important things »

Jun 19, 2012


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That was depressing. Hard to escape the math or the inflation to come.


Not only is it an option, but an unacknowledged surety lest a sovereign reference entity default, triggering the great CDS unwind.


Well, there is only so much Value to go around. People do like to cling to their Money = Value notions.


Let's not let a little thing like value to currency get in the way of pure lunacy.


The creation of the euro created a credit (tragedy of the) commons among the EU member nations.

Member nations were able to borrow, whether privately or publicly, at lower rates than they would have been able to on their own because there was a sense that the whole of the EU was "cosigning" for its members. Why? Once a nation was in the EU there was no out. Not only could a nation not say "We're out", but there was no way for the EU to evict member nations. Without that option it became accepted that the EU would be forced to bailout the profligate borrowing of its members or face the failure of the euro. The result was abnormally low interest rates for member nations and increased borrowing on their part...

Is it any surprise that the member nations overgrazed?

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