Writing Worth Reading
Writing Worth Reading
Draghi defends Greek bailout, austerity measures. "Before we move to a fiscal union we have to have in place a system where countries can show they can stand on their own. This is the prerequisite for countries to trust each other"
What next? "Rather than taking effective action, everyone may keep on doing as little as possible while austerity turns recession into depression. And even if things work out in the short term, there are big problems down the track"
Ireland is cutting spending and increasing taxes. Eurozone is doubling down on this. But chances of it leading to Irish economic turnaround do not look good. And if it's not working in Ireland, what price anywhere else?
The markets have sent Germany a message. It's no longer a safe haven, and there is no painless solution to euro troubles. This is the beginning of the end for the currency zone. Here's why, and how it's likely to play out
Fine analysis (PDF) of euro woes, how to resolve current turmoil. The eurozone crisis is as much a tale of excess bank leverage and poor risk management in the core as of excess consumption and wasteful investment in the periphery
"If your choice is global calamity or the printing of money, which would you choose?" Presumably the latter, though it's no long-term solution. The alternative, a European sovereign debt crisis, would be disastrous. Even for Germany
Sharp insights on euro debacle. "You need policies designed to promote job growth, higher incomes and a corresponding ability to service debt before you can expect a borrower to take on a loan or a banker to extend one"
Excellent read on what Europe means to Ireland. First it was the money. Then came equal pay for women, decriminalisation of homosexuality, a sense of connectness. Now it's back to the money. But this time it's flowing the other way
"There is no precedent for this crisis, nor is there a recipe that could be applied to resolve it. Europe's politicians have maneuvered themselves and their people into an unparalleled situation." Final part of excellent euro report
Would a fund of such magnitude stabilise the eurozone crisis? Would the markets be "awed into submission"? This analysis argues not. More is required. Trouble is European leadership doesn't recognise reality of what's needed
Fine report on origins of Europe's debt crisis. A collapse of the European Union is now a possibility. And one which "would cause a financial convulsion that would make the collapse of Lehman Brothers seem like a theme-park ride"
Complex (and controversial) analysis of Greek economic woes arguing that financial oligarchy has come to replace democracy. In short, ECB, IMF and other financial agencies have ensured bankers get paid at expense of taxpayers
