tag:blogger.com,1999:blog-8817171247555815363.post4045364784279522952..comments2024-03-26T05:57:44.937+00:00Comments on True Economics: 2/12/2011: Euro crisis: wrong medicine for a misdiagnosed patientTrueEconomicshttp://www.blogger.com/profile/07350536454228478974noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-8817171247555815363.post-19711887661084130202011-12-05T18:14:15.672+00:002011-12-05T18:14:15.672+00:00It's nice that somebody finally talks about th...It's nice that somebody finally talks about the REAL dimension behind the Eurozone state deficit problems: Eurosclerosis.<br /><br />If my (German) countrymen were a little brighter than they actually are, they would aggressively market the argument that Southerners (and maybe even Germany itself!) have to reshuffle their regulatory system, and not look for some new donors to keep sponsoring their wanton ways!Cangrandehttps://www.blogger.com/profile/15886612960494544505noreply@blogger.comtag:blogger.com,1999:blog-8817171247555815363.post-86769286885312623432011-12-02T12:36:36.246+00:002011-12-02T12:36:36.246+00:00Musical chairs isn't it?
Who is the next TBTF...Musical chairs isn't it?<br /><br />Who is the next TBTF sovereign?<br /><br />Spain - with massive youth unemployment, banks that havent even marked to market their junk asset portfolios and when they do will require massive recaps - back to the bond market for that? (i dont think so)<br /><br />France - the great pretender - a complete mess hiding under the radar until a bank failure reveals all.<br /><br />Germany - Surely not - until you examine their debt to gdp ratios.<br /><br />Fiscal integration, Eurobonds - ah ok lets package more debt ridden crap and attempt to sell that to who ??<br /><br />You couldn't make this up.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8817171247555815363.post-3378887871190008932011-12-02T12:23:39.681+00:002011-12-02T12:23:39.681+00:00What about EFSF/ESM programs? Surely these will in...What about EFSF/ESM programs? Surely these will include structural reforms. Certainly if the IMF becomes directly involved thay will demand structural reforms -would that not be a mechanism for Italy and the other troubled countries to escape the crisis through growth?<br /><br />In Ireland for instance, at the insistence of the Troika we have begun to act to reform sheltered professions. When/if these reforms proceed, surely this will have a positive growth impact. <br /><br />Furthermore, in some of the Southern countries there are substantial state assets that can be used to reduce debt burdens.<br /><br />So there are ways of reducing debt and stimulating growth while the ECB bridges us over this period. But of course it will all be for nothing if politicians subside back into inactivity once the ECB becomes active.Gav Rochehttps://www.blogger.com/profile/04831954459364234417noreply@blogger.com