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Europe's austerity has made its problems worse, Paul Krugman writes, and the renewed...

Europe's austerity has made its problems worse, Paul Krugman writes, and the renewed "confidence" that was supposed to revive the private sector when governments got their fiscal houses in order has failed to appear. The ECB acts "as if it is determined to provoke a financial crisis," raising rates and warning against any form of debt relief.
Comments (56)
  • joro_ianev
    , contributor
    Comments (378) | Send Message
     
    Ah, the Krugman wisdom for the day ... Renewed confidence? ROFL! The confidence in the Greek government's ability to get their fiscal house in order has been eroded long time ago. The question is how long it will be before the electorate forces them to pull out of EU, because the sacred cows of the large, no-layoff civil service have been violated.
    23 May 2011, 06:04 PM Reply Like
  • The Geoffster
    , contributor
    Comments (4009) | Send Message
     
    Economics according to Krugman:
    Debt (D) x Debt upon Debt to infinity (D~) = Balanced Budget (BB)
    DxD~=BB
    23 May 2011, 06:19 PM Reply Like
  • WMARKW
    , contributor
    Comments (10244) | Send Message
     
    I think we have a grand total of $14.5 Trillion of stimulus that has not proven to do much of anything good. I find it amazing that all central bankers and their water carriers think that adding more debt is the solution. Oh wait...bankers can only make money by creating debt. (Well at least that was the case until the end of Glass Steagall)
    24 May 2011, 12:07 AM Reply Like
  • mdmrjsds
    , contributor
    Comments (502) | Send Message
     
    Of course it has made Europe's problems worse. There are no 'good' solutions left.

     

    The time to solve the crisis was when policies like those that Paul Krugman advocates were creating it. As John Maynard said, something for nothing is not a long term solution.

     

    In my more masochistic moments I sometimes wish that all these economists prescribing greater and greater amounts of deficit spending could sit on the Federal Reserve board. They could then demonstrate to the world at large the bankruptcy of their ideas. I had hopes when Ben Bernanke came up for renewal that Obama would appoint someone like Krugman, but alas, they were dashed.

     

    Perhaps then we would put in place a financial system that didn't blow up every 5 to 10 years.
    23 May 2011, 06:23 PM Reply Like
  • Angel Martin
    , contributor
    Comments (1291) | Send Message
     
    be careful what you wish for md, my guess is that Janet Yellen will succeed Bernanke.

     

    she already has Krugman's endorsement:
    krugman.blogs.nytimes..../
    23 May 2011, 08:21 PM Reply Like
  • Ray Lopez
    , contributor
    Comments (1508) | Send Message
     
    "In my more masochistic moments I sometimes wish that all these economists prescribing greater and greater amounts of deficit spending could sit on the Federal Reserve board. They could then demonstrate to the world at large the bankruptcy of their ideas. I had hopes when Ben Bernanke came up for renewal that Obama would appoint someone like Krugman, but alas, they were dashed.

     

    Perhaps then we would put in place a financial system that didn't blow up every 5 to 10 years."

     

    @mdmrjsds - Something lost in your post. You think Krugman as Fed head would NOT blow up the financial system? You surely made a typo. He would blow it up every 5 to 10 minutes, as he is even more of an inflationist than Helicopter Ben.
    23 May 2011, 08:44 PM Reply Like
  • wyostocks
    , contributor
    Comments (7617) | Send Message
     
    SA editors, there you go again!!!!!!!!!!!!!!!!!...
    23 May 2011, 06:29 PM Reply Like
  • The Geoffster
    , contributor
    Comments (4009) | Send Message
     
    If you like socialism and central planning and think brilliant minds can make it work, then you shouldn't be taking investment advise from SA because you might increase your capital and lose your religion.
    23 May 2011, 06:31 PM Reply Like
  • Wyatt Junker
    , contributor
    Comments (4503) | Send Message
     
    There was austerity? Where?

     

    Last I checked the Spaniards just formally rejected austerity in this weekend's election just like Greece. The voters didn't want austerity. They wanted more free crap.

     

    Its why the market tanked today. The market understands that there's no such thing as 'free crap'. If 'free crap' had been an ETF it would have tanked. Wait it did. Greek bonds.

     

    Maybe if austerity had actually been tried...
    23 May 2011, 06:46 PM Reply Like
  • T in Az
    , contributor
    Comments (35) | Send Message
     
    That's exactly what I was thinking! I guess austerity now means not as much free stuff.
    23 May 2011, 06:58 PM Reply Like
  • This Game is so Rigged
    , contributor
    Comments (68) | Send Message
     
    Funny stuff, "free crap".

     

    The irony is that the Spanish fired the Socialists and moved to the Right - in order to get more "free crap". Retards.

     

    It just shows you, everyone gets the government they deserve.
    23 May 2011, 07:10 PM Reply Like
  • LKofEnglish
    , contributor
    Comments (4386) | Send Message
     
    25% unemployment isn't "austerity"? i look forward to your definition of what is. The US had a gut reaction to it's collapse but when you factor how centralized our financial system already was and "more is" then i think the result had a certain "authority" that's for sure. i think if that is what you feel is lacking in this crisis then i say "have no fear." Her name is "Christine." She was "quite the car in her day" I hear.
    23 May 2011, 09:02 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    UE and austerity are not related unless you believe everyone should work for the government. Or you believe that only the government can drive the economy. Which of course would come through deficit spending.

     

    Given the debt levels of a number of the EC countries I don't think anyone can say they have had any austerity in a very long time.
    23 May 2011, 11:31 PM Reply Like
  • WMARKW
    , contributor
    Comments (10244) | Send Message
     
    Austerity means only 26 weeks of unemployment, not 99.
    24 May 2011, 12:08 AM Reply Like
  • Wyatt Junker
    , contributor
    Comments (4503) | Send Message
     
    25% unemployment is the exact opposite of austerity. Work has been replaced with welfare payouts. Look out ours here at 10% which translated into an unprecedented two years plus of unemployment checks. In fact, the higher and longer the unemployment, the more people are incentivized to remain so... by government. The higher the unemployment the more government responds by taxing the few dumb ones left who remain working.

     

    Look at Greece and Spain. Go visit them. They have reduced working hours by laws forbidding too much 'activity', encouraging their people to slow down. Look at France. Mandatory ceilings on working hours reduced from 40 to 35 and from 35 to 30 hours a week. And let's not even talk about the Spanish siestas or the Greek men who break in the middle of the day to take shots of Mythos from a spoon and lay about in the sun. It is a cultural problem. They look at Americans as crazy. Why would we work so hard? Crazy American. Slow down. Life is to be enjoyed.

     

    Yep. The opposite of austerity for generations now, coming home to roost.
    24 May 2011, 03:37 AM Reply Like
  • Ken Hasner
    , contributor
    Comments (427) | Send Message
     
    Look the crisis facing the EU is essentially the same as we face in the US. In the EU sovereigns that have no ability to service their huge debt loads are asking the larger community to spread the pain over all citizens instead of the ones that benefited from the debt.

     

    In the US we have a similar situation in that the banks having made commitments that they could never keep have via the FED forced all citizens to share the burden of their largess.

     

    The true solution has so far been ignored. Instead of punishing those that did not incur the debt / wild leverage we should force the entities that did to undergo the austerity or fail.

     

    Otherwise the market will force it on all of us and we will all fail instead of the ones that created the problem.

     

    I am sick and tired of this nonsense and it must stop soon.
    23 May 2011, 06:52 PM Reply Like
  • Wyatt Junker
    , contributor
    Comments (4503) | Send Message
     
    Its not just the banks. The banks were just the vehicle used to prop up government sponsored housing.

     

    You could just as easily say the problem was medicare and social security as it causes people to not be responsible for themselves. Look at Greece. Slaves of the public lie.

     

    The lie that says you can be taken care of, no matter what. The lie that says you can have free healthcare. The lie that says you can have free retirement, public pension or SS. The lies that says you can have a free house.

     

    These are lies of our society. These are the lies of Big Government.

     

    The banks were just smart enough to see where this was all going. If you're gonna hand the keys to the candy store to the second graders, you might as well start selling dental insurance.

     

    I can't blame the banks for being... banks.
    23 May 2011, 06:59 PM Reply Like
  • Humble Value Miner
    , contributor
    Comments (406) | Send Message
     
    actually you can have a good public healthcare: in Italy it costs 8% of gdp, while private US healthcare + medicare costs 15% (this is not because Italians are particularly smart, but thanks to economy of scale: in a middle city there are not the hospital X Y and Z, but just the public hospital, that actually can spend more and can have more advanced machines - in spite of being "public", so often with low-profile administration)

     

    the problem for Greece is corrupt government, too much taxes, VAT (when you give to the government more money, they spend more*2), 3 public servant where 1 is needed, retirement at 60 years old, unions...
    Actually corruption, too much public servants, too high taxes is also a problem for Italy - it appears however that finance minister Tremonti has kept expenses in control (for the first time since years), the next step is doing some cuts to moneywasters...

     

    Last but not least bankers are to blame but they are doing their job (=rob us money :) ), the public servant that reads the newspaper instead of doing his job deserves imho more blame.
    23 May 2011, 07:28 PM Reply Like
  • Ray Lopez
    , contributor
    Comments (1508) | Send Message
     
    "You could just as easily say the problem was medicare and social security as it causes people to not be responsible for themselves. Look at Greece. Slaves of the public lie."

     

    Greece is enslaved to the public civil servants, but comparing US to GR medical care, for routine things it's much cheaper here. You get a complete physical plus chest x-ray and a battery of blood tests for about $250. And that does NOT include any government subsidy (that is, you get this price going to a 'black market' doctor who is moonlighting). Try doing that in the US. Minimum they would hit you with a $1000 fee and then hit your insurance company with another $1000 fee. Health care is out of control in the USA.
    23 May 2011, 08:47 PM Reply Like
  • LKofEnglish
    , contributor
    Comments (4386) | Send Message
     
    malarkey. the government demanded this from the banks "and the government got exactly what it asked for" when Greenspan inverted the yield curve. the government basically called it out on it's insane housing policy self in a "you figure us out" way and so Wall Street did the best it could. the biggest failures were the government banks, an unregulated AIG and two auto companies before in my view Bernanke who was already saving the day having replaced Greenspan was able to work with the massive assistance of Treasury and the entire Congress. Obviously Lehman couldn't be saved--how about Greece then? Obama's Presidency was assured--and rightly so. spectacular in an "oh so not reported way" since "we've been in crisis mode ever since." now we have these dog's raging in Europe and Japan--we shall see how well the powers that be stay focused on what the problem was in the first place namely "non-existent risk management" via "fixed income guys who were considered wussies" by all the now former powers that be. As if it needed to be said again "Here endeth the lesson" on that one. Of course the beauty is "it needed to be said again" and "naner, naner boo-boo i got to say it first."
    23 May 2011, 09:40 PM Reply Like
  • TechnologyMike
    , contributor
    Comments (35) | Send Message
     
    Most likely cause we don't have true competition and downward pressure on prices. The doctors get paid what the insurance says they are going to pay.
    23 May 2011, 10:30 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Wyatt

     

    I cannot even say the banks were that smart. If the government agrees to buy all loans that are conforming then why do I have to be smart? I just create them and sell them. You can fire all the smart loan officers and just have a bunch of smucks run your loan process and check off the boxes and book the loans and then send them to Fannie and Freddie.

     

    The fish rots from the head down.
    23 May 2011, 11:35 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    LK

     

    You ever hear of something called a paragraph?
    23 May 2011, 11:38 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Bankers don't rob anyone as anyone can put their money in the mattress or move it out of USD and put it into gold or silver or anything else. It is lazy to blame bankers.

     

    But I do agree with you comment on public servants not doing their job because the banks did need more oversight leading up to 2008 and obviously someone was sleeping on the job.
    23 May 2011, 11:40 PM Reply Like
  • WMARKW
    , contributor
    Comments (10244) | Send Message
     
    My answer to the TBTF banks is for all depositors and businesses that do any business with one of the top 100 banks to pull their money out, cancel their credit cards, pay off their loans and find someone else smaller and more deserving of their business. Forced downsizing.
    24 May 2011, 12:10 AM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    WM

     

    This TBTF scenario is a head fake which over time has just been good headlines and journalist fodder looking for reporting prizes.

     

    What happened in 2008 was that the entire mortgage banking system failed and banks are still being taken over now. The reason it failed was because we decided to give credit to people for homes that could not pay back. In our infinite wisdom we thought everyone should own a home.

     

    The chief proponent of this was the US government so bad underwriting happened at banks of all sizes along with fraud throughout the entire real estate value chain.

     

    The point is when you have systemic failure you have to assist the majority of the assets at risk whether they are in 100 large banks or spread out across thousands of banks. The stupidity was not in a few banks it was across the entire system and the government was neck deep in it. Now of course Fannie and Freddie (i.e. The Federal Government) guarantees over 90% of the home loans.
    24 May 2011, 12:46 AM Reply Like
  • AnchorMan
    , contributor
    Comments (115) | Send Message
     
    Ken, spot on.

     

    Wyatt, really? So when the bank were giving out loans to people who couldnt afford it they were doing so because they were being used as a vehicle by the government? They just accidentally rolled them up into securities and sold them to clients to make $$ then bet against them to make more $$$ and then when it all went poof! they went to congress and got our $$$$?

     

    To say you "cant blame banks for being....banks" is akin to saying you "cant blame criminals for being.....criminals".
    24 May 2011, 12:51 AM Reply Like
  • tbirdone
    , contributor
    Comment (1) | Send Message
     
    @TomasViewPoint. Not sure who you're referring to when you say "we" decided to give credit to people that couldn't pay it back. Certainly there was the contingent on the left that lobbied to make home ownership easier but that would have never happened if the BANKS weren't able to write the loans, package them as investments, insure the risk with credit default swaps, and effectively move them off their books. The BANKS wanted those sub-prime loans more than the left....why....because they were making a ton of money. You may not think TBTF is real but we've already seen banks that, even without going under and even with huge influxes of capital via TARP to make sure companies could still borrow....credit still choked. What do you think would have happened if every company in America suddenly had no revolving line of credit?
    24 May 2011, 02:15 AM Reply Like
  • Wyatt Junker
    , contributor
    Comments (4503) | Send Message
     
    "So when the bank were giving out loans to people who couldnt afford it they were doing so because they were being used as a vehicle by the government?"

     

    ABSOLUTELY.

     

    www.youtube.com/watch?...
    24 May 2011, 03:30 AM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    tbird

     

    OK name the banks involved in subprime. It is a short list and they are all gone. There are over 8K banks and thrifts in existence and 99% were not involved in subprime.

     

    The government has stepped into the banking industry all the way down to small community banks so the TBTF metaphor is really obscuring the fact that the entire industry was failing. And by the way nobody is better at off balance sheet gymnastics than our federal government.

     

    Agree with you on the "we." Most of us would have never made the loans that were being booked prior to 2008.
    24 May 2011, 08:16 AM Reply Like
  • AnchorMan
    , contributor
    Comments (115) | Send Message
     
    hahahahahahahahahahaha... seriously? a youtube link to a fixed news network broadcast!!!! you are ABSOLUTELY ridiculous.
    24 May 2011, 11:38 PM Reply Like
  • Wyatt Junker
    , contributor
    Comments (4503) | Send Message
     
    I see. Appeal to the source, not the argument. And in this case, the source being the actual politicians' own words.

     

    You can listen to them again if you want. The 'fixed news network broadcast' (whatever that means) didn't dub the audio from some alien, covert source within Rupert Murdoch's insidious cave. Follow me. It may be difficult for you. When the politicians spoke, air left their lungs, pushed by their diaphragm up through their vocal chords, forming words audibly in the exact manner in which their brain telegraphed them. Yes, from a fixed news network broadcast. Its absolutely ridiculous, isn't it?
    25 May 2011, 02:03 AM Reply Like
  • AnchorMan
    , contributor
    Comments (115) | Send Message
     
    So because mccain and a few others were pushing for more regulation of fannie and freddie (wait, what happened to less regulation and get govt out of our lives?) you can put the entire blame on the individuals that took mortgages, and the banks and wall street had nothing to do with it?

     

    If Im a bank, why am I approving loans for people with no income and nothing to put down? because the government wants me too? please, they did it because they knew they could make money off it, (sell MBS's to wall street), and they were quite happy at the time. Not until it all came apart did they start to cry.

     

    So we can sit around and rehash what happened back then, or as Ken is suggesting , come to understand that there are only a few limited options left, put it on the guys who created the problem (homeowners, banks and wall street) or spread it to all of us. In my opinion the latter is whats happening and it will crush us all except for the top 2-3%
    .
    Titanic comes to mind. Only rich women and their children survived, everyone else died!
    25 May 2011, 10:18 PM Reply Like
  • Wyatt Junker
    , contributor
    Comments (4503) | Send Message
     
    "So because mccain and a few others were pushing for more regulation of fannie and freddie (wait, what happened to less regulation and get govt out of our lives?)..."

     

    I think you have a fundamental misunderstanding of the nature of the problem. It wasn't just McCain by the way.

     

    We want 'less regulation and get govt. out of our lives' by ending the Community Reinvestment Act.

     

    We want 'less regulation and get govt. out of our lives' by ending the SOEs which underwrite 97% of all mortgages.

     

    We want 'less regulation and get govt. out of our lives' by ending artificially low rates which encouraged these bubbles to develop.

     

    Less regulation and getting government out of our lives would help the country to actually begin to heal. If banks didn't have such a generous taxpayer funded backstop, they wouldn't have entertained the CDS market in the first place. If the people who ran the banks actually had their own fates sealed within the risk assets instead of the taxpayer we would have had a more conservative lending practice.

     

    The government promised the American Dream. Then underwrote it into existence. The banks merely followed orders.

     

    We went from a chicken in every pot to a home on every block. WDC has been in this game for a very long time. Buying votes has been a very lucrative business for the last 70 years. And now they want you to hate the banks so they don't go to prison. Hey, it works, right? A lot of people misplace the blame just like you. WDC knows that.

     

    In the meantime, Kamala Harris and the rest of the AGs in the WDC club of pub-hound darlings will squeeze out more money not from the banks, but the taxpayer via the banks, that you will pay through higher rates and fees. Elizabeth Warren, Cuomo, etc. They're all in this together.

     

    Meanwhile, those banks will just stay frozen in amber and our unemployment will continue to remain fixed where it is. In the unbelievable hell of a staggering, under reported 18%, while we ram foodstamps into their mailbox.

     

    Go ahead, hate the banks.

     

    Obama needs to get re-elected. At this point, misdirection is his only hope.
    25 May 2011, 10:40 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Anchor

     

    There is also the Bismark sinking!

     

    We have a ton of people cashing checks from the government right now that cannot be supported. There are people not paying mortgages because they have lawyers and judges sitting on cases.

     

    Welcome to deadbeat America.
    25 May 2011, 11:35 PM Reply Like
  • AnchorMan
    , contributor
    Comments (115) | Send Message
     
    Never said I hate the banks, I work for one! And we make a TON of money, one of the few that are greatly profitable, and growing rapidly globally and just flat out killing it (I wont say which one, sorry).

     

    What you are referring to, low interest rates and the generously funded taxpayer backstop, is not regulation. Those were "emergency provisions" put in place to prevent a financial meltdown.

     

    Regulation of lending standards I agree with you on, but we also have and need all sorts of regulations in the financial world.

     

    I'm sure you would agree with me that anti-money laundering regulation that went into effect soon after 9/11 to identify potential terrorist organizations was good regulation. Something like that a bank would never do on its own, as there is no benefit to to the bank to spend the money to do so. Wire transfers, SWIFT, ACH, sec lending, all regulated (some better than others) and if they were not it would be an absolute mess.

     

    As for your last comment, I do not doubt your sincerity in wanting to see our nation get out of this mess, I do as well. In the end it does me no good if most of my fellow countrymen are broke and unemployed. But turning this into Obama vs. the Republicans won't get us there. Its bigger than that. If you really want the nation to heal, the partisan politics has got to stop.

     

    26 May 2011, 01:41 AM Reply Like
  • AnchorMan
    , contributor
    Comments (115) | Send Message
     
    the "ton of people cashing checks from the government" are just getting the money back they put in to unemployment funds when they were working. Sure, some folks are not paying their mortgage who can afford to do so, but with real unemployment at 18% do you really think thats the norm? I would bet that its not, most just dont have the dough to drop every month. Unemployment gets you enough meals and maybe bus fare to go to interviews, thats about it.
    26 May 2011, 01:45 AM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Anchor

     

    Have you ever seen a deduction in your paycheck for UE? Nobody has ever paid a dime for UE. The employer paid it and then added on it on to the price of their products so consumers paid for UE.

     

    Frankly I would not mind if people lived in the houses without paying but they should have to pay for every month they skip payments in arrears as rent payment once they get back on their feet.
    26 May 2011, 10:35 PM Reply Like
  • Wyatt Junker
    , contributor
    Comments (4503) | Send Message
     
    I doubt very many people including Anchor even know that the employer also matches, dollar for dollar, every payroll tax deduction they see on their check.

     

    We live in sad, interesting times. This generation of entitlement farmed personalities haven't had much back end experience with meeting friends such as the board of equalization or the franchise tax board. LOL.

     

    They think only their stub is the contribution. The employer never advertises this. Perhaps he should.
    26 May 2011, 11:41 PM Reply Like
  • HiSpeed
    , contributor
    Comments (1063) | Send Message
     
    SA announces the latest the vile rubbish that spews from Krugman's Obama-loving pie-hole strictly because it gets comments.

     

    Yes, SA, we all love to rip on complete idiots like Krugman who believe it's impossible for govt to run out of credibility while printing endless amounts of money which (according to Krugman) has no effect on inflation whatsoever!
    23 May 2011, 07:11 PM Reply Like
  • coddy0
    , contributor
    Comments (1182) | Send Message
     
    still waiting for Paul Krugman to say that we had too much of domestic austerity recently
    something like 'unrealized yield of deficit gain spread'
    23 May 2011, 07:30 PM Reply Like
  • petergrt
    , contributor
    Comments (326) | Send Message
     
    Every time I read or hear an opinion from Paul Krugman, I have to remind myself that he was awarded the 2008 Noble Prize for Economics . . . . and thus, that he cannot be a complete moron . . . . but it is getting harder and harder . . . .
    23 May 2011, 07:37 PM Reply Like
  • The Geoffster
    , contributor
    Comments (4009) | Send Message
     
    After awarding the Noble to Krugman, the committee was flummoxed. How could they top that? They decided on the Peace Prize to Obama. Next year, they plan to give the prize in Physics to Bernanke. His monetary policy has defied gravity, eclipsed all reason and created a black hole of debt.
    23 May 2011, 09:31 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Noble Prizes are now corrupt like everything else.
    23 May 2011, 11:41 PM Reply Like
  • wolverine1987
    , contributor
    Comments (130) | Send Message
     
    Oh, former Enron advisor Paul Krugman said it? Ok, let me consider my position for a second... done. Ya, the opposite is true, which is always the case with every ludicrous utterance that comes from his mouth. He long ago stopped being a legitimate economist, and is now simply a flack who knows nothing.
    23 May 2011, 07:42 PM Reply Like
  • Ken Hasner
    , contributor
    Comments (427) | Send Message
     
    I believe Dick Cheney was also a former Enron advisor...strange bedfellows eh ?

     

    It just goes to show there is one party and only one party and its name is greed.
    23 May 2011, 07:53 PM Reply Like
  • tigersam
    , contributor
    Comments (1711) | Send Message
     
    Only Germany wanted austerity for these nations so they do not want to rescue these nations. If you give austerity to these nations then rich people need to pay taxes and poor people need to work. So people rejected austerity.
    23 May 2011, 08:18 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    tiger

     

    In the case of Greece nobody wanted to pay taxes which is kind of like........let me think. Oh yes the good ole USA.
    23 May 2011, 11:43 PM Reply Like
  • Bouchart
    , contributor
    Comments (755) | Send Message
     
    In what world are budget deficits considered "austerity"?
    23 May 2011, 09:35 PM Reply Like
  • zhellc
    , contributor
    Comments (58) | Send Message
     
    The people from US and UK have cooked the sovereign crap for two years now trying to bring down the EURO but so far have failed. The world is not going to fall apart as wished by these people. They told the world that Greece (a nation whose GDP is about that of Kansas) will drag the world economy down.
    23 May 2011, 10:58 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Prior to the credit crisis of 2008 it was inconceivable that sub prime credit could affect other classes of credit. How is that working out?
    23 May 2011, 11:45 PM Reply Like
  • Bouchart
    , contributor
    Comments (755) | Send Message
     
    How much fraud is going on behind the scenes? How much fraud will be revealed after Greece collapses? It's nearly impossible to take anything at face value.
    24 May 2011, 12:09 AM Reply Like
  • petergrt
    , contributor
    Comments (326) | Send Message
     
    I beg your pardon!

     

    The US tax payer has covered 100% of the billions of default swaps issued by AIG that were held by a bunch of European banks, ostensibly because they would have gone bankrupt . . . .the same banks are holding billions more of the Greek debt, which, if defaulted, would bring down those very banks . . . .

     

    US should not have covered those swaps, or at least not at par.
    24 May 2011, 01:53 AM Reply Like
  • AnchorMan
    , contributor
    Comments (115) | Send Message
     
    Petergrt, but how else do you transfer wealth? its real simple, convince the mass morons of a nation that it is in their best interest that 1% have all the money and it will trickle down to them, convince them that higher taxes on these same folks will cost the poor folks jobs and is just socialism, and then behind closed doors take all the poor stupid peoples money and transfer it up! its quite ingenious actually. socialism in reverse.
    24 May 2011, 11:42 PM Reply Like
  • Wyatt Junker
    , contributor
    Comments (4503) | Send Message
     
    Or just socialism, straight forward, full steam ahead.
    25 May 2011, 01:55 AM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    peter

     

    It was not only Euro banks holding swaps. US banks also held the same swaps. It would start a financial war if the US paid out US banks and not Euro banks.

     

    How about a feasible solution?
    25 May 2011, 10:02 AM Reply Like
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