Eschaton: Perhaps More People Should Have Listened To The Dirty Hippies From The Beginning: Apparently imploding economies is not the best strategy.
Financial market participants say they are more concerned about the absence of growth in the euro zone than about budget deficits and public debt levels now, because growth is what will enable countries to service and repay their debts over time. "It looks like the LTRO is having a positive contribution. Does it solve all of the problems sustainably? Probably not," said Andrew Bosomworth, a senior portfolio manager at Pimco.
"At the end of the day, it comes down to growth -- that's what these countries need to keep their debt sustainable."
Everybody has been getting it backwards.
- Cut spending
- ?? 3.Growth
When the reality is:
- Increase spending
- pay down debt
Yes things were a bit more complicated with Greece, but the people in charge have just made things worse. Won't hold my breath for an apology. Sorry we destroyed your economy! Bygones.
Angela Merkel has cast doubt for the first time on Europe's chances of saving Greece from financial meltdown and sovereign default, conceding that Europe's first ever multibillion bailout coupled with savage austerity was not working after two years of crisis that has brought the single currency to the brink of unravelling.
It never, you know, made any [fraking] sense.