Mass Confusion in Europe
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  • vanderleun

    “… creditors in Northern Europe seem surprisingly nonchalant, a stark contrast from their anxiety only a few weeks ago.”

    Of course they have. They’ve just figured out that with a return to the tattered drachma their vacation homes and hotels on the Greek Islands are going to be a whole lot cheaper this summer.

  • Jim.

    One problem here is a breakdown of transparency. Greek financial promises can’t be trusted. bad decisions are frequently papered over, or corrected in the dark to prevent people from knowing how bad those decisions really were.

    Honestly, I don’t think it’s possible to know, completely, what’s going on because it’s impossible to know what’s on the mind of every decision-maker.

    We just need to keep doing the right thing, and have faith.

  • WigWag

    Hank Paulson thought the United States could afford to let Lehman Brothers collapse; he was wrong and the results were calamitous. Those who think Europe could ride out a Greek collapse may very well be making the same mistake.

  • “predictions for the future seem to vary wildly on a week-to-week basis. One week disaster is imminent, the next the crisis is nearly solved.”

    Indeed. German and other European banks foolishly advanced these loans to a sovereign nation and certainly deserve to bear some of the losses, which apparently they will. I

    In Ireland meanwhile they made equally foolish loans to private developers and seem to have escaped scot-free. I don’t get it. Why are the Irish people left holding the bag?

  • Mrs. Davis

    Whig,

    Don’t you mean the President of the NY Fed thought he could afford to let Lehman collapse?

  • Jacksonian Libertarian

    Let’s face facts, Economists are all quacks, if what they really do is Science, then it would have some predictive value.
    The Scientific Method is clear, if your theories cannot predict results, then your theories are [without merit].
    Anyone with a brain can see that if a Government is sucking up much of the operating capital of its economy, there is little left for consumers or businesses to use. Practically every Government in the world is now sucking their economy dry, and the world economy is deep into Great Depression 2.0 because of it.

  • Anthony

    “…the eurozone is in deep recession, especially in the periphery, but now also in the core economies, as the latest data show an output contraction in Germany and France. The credit crunch in the banking system is becoming more severe as banks deleverage by selling assets and rationing credit…fiscal austerity is pushing the eurozone periphery into economic free-fall…”Greece descends further into chaos as more fiscal austerity induces greater political instability and civil unrest.

    The consequence of the aforementioned WRM forebodes Greek recession turning into Greek depression – perhaps exacerbating economic downturn for greater Europe and continued mass confusion (downsides everywhere).

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