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It's not bizarre that it's happening - it's bizarre that the EU 'leaders' are taking the attacks at face value and assuming that this is about fiscal responsibility, or whatever other reason is being used as the pretext du jour. And also that Germany has gotten itself into a position where internal politics have become more influential than long term solidarity.
Neither of these things are bizarre either. Europe's politicians and economic policymakers have either been schooled in neoclassical economics and the efficient market hypothesis, or have been raised in market-worshipping conventional wisdom. They are cognitively incapable of understanding what's going on.

Also, Germany has been making xenophobic noises about the peripheral Euro countries since the 1990s. Now this crisis can be used by them to validate their claims back then that the Euro should not have incorporated the Mediterranean countries. Everyone is glossing over Germany's deficit and debt during the peak of the business cycle in the mid-noughties while unconstitutionally cutting the social safety net, and the fact that they used their muscle at the EU council to avoid being rapprimanded for their excessive debt.

The brainless should not be in banking -- Willem Buiter

by Migeru (migeru at eurotrib dot com) on Thu May 6th, 2010 at 09:02:46 AM EST
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