Spain Still Teetering as Ministers Gather (Again)
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  • Is it already time to recognize that this is exactly what mainstream economists such as, yes, Paul Krugman, have been saying all along?

    Or should we try voodoo once again to see if it works now?

  • Kris

    “nervous investors have already signaled their pessimism, pushing Spanish bond yields above the danger zone of 7 percent.”

    [email protected]: Mainstream economists have indeed been predicting this result of excessive debt all along. How strange that some want to practice voodoo and increase the debt still further!

  • Kris #2, mainstream or reality-based economists have not. You may be referring to voodoo economists who have been predicting hyperinflation in the US as a result of, well, whatever; they are spectacularly wrong. Inflation is low and so are interest rates.

    As for Spain, the reason for high interest is the doubt that they can repay their debt if the austerity policy continues. End of story.

  • Kris

    [email protected]: Ah, so Spain enacted their austerity policy just for the heck of it!

  • Old School Conservative

    Perhaps Spain can create a vibrant economy out of thin air by building more frickin’ windmills using play money.

  • Government Drone

    “Another day, another eurozone summit.”

    Or, as I increasingly think of it, another roomful of naked emperors.

  • Kris #4, no, Spain did it for reasons that turn out to be exceedingly incorrect, and now it is paying the price. That it was going to be so could have been told by anyone familiar with the theory and history of economics, but their sound advice was rejected because too many individuals had a vested interested in a policy that never had any chance of working.

  • Kris

    It is apparently basic economics that if you want to restore investor confidence, you must go ever deeper in debt. It’s true, so Professor Ponzi taught me!

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