Friday, October 21, 2011
So Busy I Don't Have Time To Sleep
This European thing isn't looking good. No matter what they decide to do, it's abruptly going to become clear that someone is in more credit trouble.
So far the ECB is refusing to take any losses on the Greek bonds, but that would deliver a massive loss to the banks because the ECB now has a big chunk of them. Even another 300 billion in the rescue fund is going to put France underwater after it funds its banks. It's not pretty.
printing. Deflation at first for Europe, inflation for those who
control their printing presses. Savers lose again. Stagflation at best.
Occasionally, however, the hoi polloi decide they've had enough. The uprisings usually don't work out all that well for the little people either, but (at least temporarily) it tends to be VERY, VERY UNPLEASANT for the Elites. One would think they'd start to notice that we-who-pay are getting cranky...
Is that "swell" in a long drawn-out Southern twang? Or perhaps it's "swill", the leftovers only hogs will eat???
The US faces a major economic restructuring. It will be painful, but we're already well on our way. However, aside from supporting the true economic casualties, I worry that the elites do not realize how close they are to decapitalizing the middle class. This would be insanely destructive.
I worry that in trying to avoid the unavoidable the policy makers will create an Argentine-type scenario.
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