Staring at the abiss with Paul Krugman | 235 comments (235 topical, editorial, 0 hidden)

Re: solidarity (none / 0)

The imbalance problem could have been solved with very simple 'right-wing' tools: applying the law - in that case bankruptcy laws and tax laws.

Private default is a very simple way to deal with intra-zone imbalances. But we 'saved' the banks (or rather, their senior unsecured lenders). Again, the scale of the transfers caused by that decisions are so huge as to overwhelm the materiality of any other policy discussion.

Wind power

by Jerome a Paris (etg@eurotrib.com) on Sat Mar 17th, 2012 at 06:49:36 PM EST
[ Parent ]

Re: solidarity (none / 0)

Bankruptcies are the emergency rooms of the financial system. A financial system which relies on regularly having large cascades of bankruptcies to cope with elementary design flaws like the Grief and Stupidity Pact is going to be expensive and messy and will produce greatly inferior results compared to fixing the actual problem. Which is that members have no sustainable way to defend against inadequate inflation other member states.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Sat Mar 17th, 2012 at 09:16:38 PM EST
[ Parent ]

Re: solidarity (none / 1)

The way we "fixed" this messiness here in the US was to slam the bankruptcy court door (on little people, not on players) and make the trial courts an arm of the collection industry.

by rifek on Thu Mar 22nd, 2012 at 06:19:23 PM EST
[ Parent ]

Re: solidarity (none / 1)

Ah, yes, closing the emergency room will allow you to avoid dealing with the mess and expense of running an emergency room.

In other recent news, breaking the thermometer will make the patient better. True fact.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Thu Mar 22nd, 2012 at 08:50:25 PM EST
[ Parent ]

Staring at the abiss with Paul Krugman | 235 comments (235 topical, 0 editorial, 0 hidden)

Top Diaries

Shock Election Loss Rutte IV In Senate Race

Honduras Establishes Close Ties with China

A Return to Normalcy?

A Grand Slam for Ireland?

NI Protocol: It's all over bar the shouting?

Chinese peace principles for the war in Ukraine

The Windsor Framework

Twenty years of war in Iraq

Recent Diaries

Settler Extremism Blessed by Jerusalem Leaders

US Interference In Lebanon-Syria-Ira
q

City Agriculture - March 17, 2023

Shock Election Loss Rutte IV In Senate Race

Stalemate Endures, Pessimism Grows, Deaths Mount

Honduras Establishes Close Ties with China

A Grand Slam for Ireland?

Living In Spain and Social-Democracy

USA Censorship Act to Kill Disinformation

Flying Fortresses and Nuclear Threat

Universal Criticism Asylum Threshold EU Fortress

China Trade and Relations

SBU As a Terror Network

A Return to Normalcy?

Georgia and Foreign Agents or Spy Law

Nord Stream Blasts Timeline of Denial

Crimea As Endgame Before Going M.A.D.

Scourge of Joint Alliance USA, KSA and Jihadists

Israel's Fascists Call for Genocide on Palestinians

NI Protocol: It's all over bar the shouting?

Occasional Series