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Well, that article clearly points out that the markets forgot for 10 years that the euro is a structurally hawkish currency. There was no reason for Spanish or Greek bonds to cost the same as German ones, and yet they did.

So markets mispriced risk for 10 years and are now panicking. Big f'ing deal. They are panicking over EXACTLY what they warned would be the reality of the euro - spendhrift Southerners and intractable Germans. They were wrong, it's their problem, not Europe's.

And well, yes, Greece should have been a bit less careless in how it spend money it borrowed at unexpectedly cheap rates. It's not because banks throw money at you that you have to burn it.

Wind power

by Jerome a Paris (etg@eurotrib.com) on Thu May 6th, 2010 at 07:44:26 AM EST
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