Photo credit: @julesdwit.
A not-for-profit media organization supported by people like you.
(America Abroad Media)
The Economist economics correspondent Ryan Avent updates us on the current economic situation and debt crisis in Europe.
G. Sach should be G. Sachs, of course.
Has the guest added in the overpriced loan & derivatives "help" that these countries got over the past 20-30 years from G.Sach, JPM Chase & Wall ST, The City & Canary Wharf, etc.????
All the banks & counter-parties are vulnerable because they made sure more loans, CDSs were sold.
All these "Sovereign" transactions are not transparent &, e.g., we don't know how much of JPMChase's $200B London portfolio is mixed into those and other unknown exposures.
What else did banks securitize, get AAA ratings, then computer slice & dice these "asset-backed" securities???
I'm not sure about the bankers although that is probably true. It was also the elites, the bureaucrats that were aching to be in charge w/o having to be vetted by voters.
Jeff - don't forget, it was the bankers that wanted an integrated Europe.
Maybe governments need to figure out a way to fund themselves without relying on hedge fund and private equity traders in London and NY who can make just as much money if they short and destroy countries and businesses and have no moral qualms about doing just that.
Two key issues here: economic impact of remaining or leaving the euro and political freedom. Currently "Europe" is a non-democratic, bureaucratic monstrosity. Will deeper integration result in more democratization? I don't think so, since citizens of these countries don't want this. They want greater control over their lives. The constitution was overwhelmingly rejected when individuals were empowered to vote on it. The people of Greece clearly have different goals and objectives than the people of Germany. So in order to make this work, the citizens will need to give up their freedom. What will that mean? Hostility towards the states that are getting their way, of course. Frankly, I have been talking about this since 1989. Peace in Europe is not to be taken for granted. Probably better to manage the pain but expect that there will be considerable pain. That would be better than seething hostility, loss of freedom and the terror that is likely to result.
If the Economist wants EU wide backed bonds than maybe they should also suggest England joining the group as a "strong northern economy" and share the pain of backing these new bonds.
Email addresses are required but never displayed.
Brian Lehrer leads the conversation about what matters most now in local and national politics, our own communities and our lives.
Subscribe on iTunes
WNYC 93.9 FM and AM 820 are New York's flagship public radio
stations, broadcasting the finest programs from NPR and PRI, as well as a wide range of award-winning local
programming. WNYC is a division of
New York Public Radio.