Papandreo's out, and it looks like Greece is heading for something that's an awful lot like a 50% default with enough sanctions to prevent any real recovery for a generation. Berlusconi is apparently out (but you can't really tell with Berlusconi), also on the basis of debt. What's going to happen to Italy (they're paying over 6.5% interest) is open, but it doesn't look pretty even if they can clear the crooks from their government.
As a non-Italian I shouldn't call Berlusconi a crook.
Meanwhile, several other countries are tottering because of the interest rates they have to pay on their own debt.
On the basis of "moral hazard," the electorates of the more successful countries seem indisposed to pick up the tab for the default likely countries, even though it's everyone's short, mid and long term interests. Or, have the faux populists fooled the ignorant again? In Europe yet.
Will the current instability ultimately strengthen European unity, or is this the beginning of the end?
Speaking purely financially, can and will the Euro survive the medium term as the credit crisis shakes itself out?
How badly will all of this hurt the rest of the world? Or, have we largely moved on?
If you don't support "bail outs" here, do you support them there (with them, not us, doing the baling)? How about vice versa? Do you support bailing out the credit holders (the banks)? If the banks fail, how can commerce of any sort continue there?
If you support the Europeans bailing out their banks, how can you not support them bailing out the countries?
Which is better in the long run, bailing out the banks or picking up some or all of the bad paper?
Do you agree that one of the root causes of the all mess was the IOC's decision to grant the 2004 Summer Games to Greece and Greece's related decision to just go ahead and remodel the whole country on France's and Germany's credit cards?
Discuss.
Quiz tomorrow,
BDL
Edited by boar_d_laze - 11/8/11 at 6:32pm
