svkoho

Russian Debt and the Euro

"What I am trying to say is there is no effective mechanism as far as I can see whereby those who took the decisions (many of whom are already bankrupt, and others soon to become so) can be made to pay up and put things right."
Sure there is an effective mechanism. The state nationalizes the bank, fires the perp executives. The losers are the bond and equity holders and us poor slobs who bought the overseas mutual funds and country ETFs . You play, you pay. You need to punish the risk takers, not reward them. This is a debt delamination and you don't fix it by piling on more debt.

The U.S. Dollar: A Six Month Outlook

Nice logical article. Forget the next 6 months. What about the last 6 years? This administration flushed the dollar down the toilet a long time ago. The only way to stop the slide will be to raise rates, rein in spending which any imbecile knows means getting out of Iraq and slashing military spending, stop issuing bogus inflation and labor statistics and make at least a half hearted attempt to balance the budget. This would stabilize the dollar. The economy or what's left of it is another problem. But there is no hope for the economy without a currency we can trust.