tag:blogger.com,1999:blog-6616959642391988608.post8888420241568800493..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: The solution for the Eurozone debt crisis is simpleScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger16125tag:blogger.com,1999:blog-6616959642391988608.post-30968719892657768822011-12-07T06:41:46.140-08:002011-12-07T06:41:46.140-08:00William:
Default is always the best option to cle...William:<br /><br />Default is always the best option to clean the slate. Problem is that the contagion is worrying Geitner and Europe because of the financial industry and especially the already underfunded pension funds. <br /><br />The dancing that is going on is a complete joke, but what do you expect?Jimhttps://www.blogger.com/profile/04220423345735345059noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-1217606347771750292011-12-06T08:56:20.934-08:002011-12-06T08:56:20.934-08:00BTW, Perry at Carpe Diem has chart today that hous...BTW, Perry at Carpe Diem has chart today that housing affordability is at all-time high.<br /><br />Is this what anyone expected when people were fretting about "hyper-inflation?"<br /><br />Obviously, we are in a period of very low inflation, or even deflation (if you are buying a home today, you are seeing deflation). <br /><br />The inflation-scare was always based on misconceptionsBenjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-66222797977866857742011-12-06T08:26:56.150-08:002011-12-06T08:26:56.150-08:00When I came to live in Ireland 8 years ago, there ...When I came to live in Ireland 8 years ago, there was money to burn. When I asked the source of this wealth - nobody seemed to know. <br />After all, Ireland had been one of the poorest countries in Europe. Only an uneducated man suggested it was that "Germans knew how to save and Irish knew how to spend". It only became apparent in 2009 how true this was.<br />What goes around comes burmanhandshttps://www.blogger.com/profile/09017094019479329952noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-87364690031693154952011-12-06T06:33:07.368-08:002011-12-06T06:33:07.368-08:00PS: A discussion about polemics versus pragmatism ...PS: A discussion about polemics versus pragmatism is urgently needed in macroeconomics, today...McKibbinUSAhttps://www.blogger.com/profile/10545798495680527622noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-63376872230093946672011-12-06T05:58:51.553-08:002011-12-06T05:58:51.553-08:00"Will the politicians please stop trying to &..."Will the politicians please stop trying to "fix" this Eurozone debt problem? A trillion or two of defaults might end up doing us all a world of good." Yes, the default option is simple and efficient. Then, there's the austerity option, which is unlikely to pass over the bar of public rejection. Finally, there's the monetary ezpansion option, which requires only McKibbinUSAhttps://www.blogger.com/profile/10545798495680527622noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-41926502902673360442011-12-06T04:56:46.232-08:002011-12-06T04:56:46.232-08:00Scott:
There are no easy solutions in Europe, and...Scott:<br /><br />There are no easy solutions in Europe, and the German and French had nothing new to offer yesterday. every solution being contemplated involves no pain for the Europe's rich countries (and banks), its wishful thinking.<br /><br />BTW for those who think that the problem is Socialism cradle to grave its worth nothing that some of the more "socialist" countries in Frozen in the Northhttps://www.blogger.com/profile/04901959687094626879noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-10396130757769513252011-12-06T03:55:45.134-08:002011-12-06T03:55:45.134-08:00"A trillion or two of defaults might end up d..."A trillion or two of defaults might end up doing us all a world of good."<br /><br /> If this occurs...the initial market reaction will be??? And<br />what sort of government would emerge out of such a event??<br />( I seriously doubt democratic)broderohttps://www.blogger.com/profile/12296214283216386700noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-23941850969651050262011-12-05T18:32:49.471-08:002011-12-05T18:32:49.471-08:00Scott,
"To make anyone else shoulder the bur...Scott,<br /><br />"To make anyone else shoulder the burden of losses on those assets is immoral."<br /><br />Are you suggesting that the market approach will not lead to this result?<br /><br />In the last three years, the evidence is abundently clear that everyone is punished by market forces regardless of their involvement. <br /><br />Furthermore, the world is too complex to neatly 狂猪https://www.blogger.com/profile/16599529315620633684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-4774594273670359672011-12-05T16:55:28.381-08:002011-12-05T16:55:28.381-08:00This was your most libertarian economic post in th...This was your most libertarian economic post in the last 2+ years. Glad to finally read it.<br /><br />"Capitalism without bankruptcy is like Catholicism without hell"<br /><br />It simply does not work but the powers that be (Bernanke the ring leader) are trying like hell to make it so.<br /><br />This flows neatly into why we do not need a Central Bank. The market would set the price Public Libraryhttps://www.blogger.com/profile/00017383928897945054noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-88068705195390584202011-12-05T16:52:16.965-08:002011-12-05T16:52:16.965-08:00This comment has been removed by the author.Public Libraryhttps://www.blogger.com/profile/00017383928897945054noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-76276608686906563492011-12-05T16:16:18.224-08:002011-12-05T16:16:18.224-08:00狂猪: Those who bought the PIIGS debt knew they were...狂猪: Those who bought the PIIGS debt knew they were acquiring a less-than-risk-free asset. To make anyone else shoulder the burden of losses on those assets is immoral. At the same time, those who retired very early with exceptionally rich pension benefits granted by unaccountable politicians will inevitably have to get by with less than they expected. <br /><br />It is still possible, however, toScott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-78147452508442779702011-12-05T15:21:19.461-08:002011-12-05T15:21:19.461-08:00As pointed out by previous commenter and to add to...As pointed out by previous commenter and to add to my list of prerequisites mentioned earlier, a market based approach has one more prerequisite.<br /><br />A market based approach also require the degree of human suffering be irrelevant. This is because we have to ignore the extreme suffering market force can cause in society.<br /><br />In my opinion, this requirement makes the approach immoral.狂猪https://www.blogger.com/profile/16599529315620633684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-13189070142647510652011-12-05T14:58:25.628-08:002011-12-05T14:58:25.628-08:00The big mistake was for any sovereign nation to gi...The big mistake was for any sovereign nation to give up its currency printing press. <br /><br />Sovereign debt is gilt, if they have the power of the press. You will get paid off, perhaps in inflated money, but there is no default. <br /><br />Without that, now yields are skyrocketing on Greece, Italy etc. <br /><br />Japan was way more over-indebted than these Euro nations. No default talk Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-87232405283867982782011-12-05T14:50:31.949-08:002011-12-05T14:50:31.949-08:00The bigger issue here is that these politicians ar...The bigger issue here is that these politicians are doing all they can to save the European Socialized Cradle-to-Grave Welfare State, or at least bring it in for a softer landing.<br /><br />What would Greece or Spain do if overnight, their access to credit disappeared? They have made promises to generations of citizens that they will not be able to keep. Pension checks will completely dry up RichmondG30https://www.blogger.com/profile/15406119391866964600noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-20626905660075626102011-12-05T14:34:49.037-08:002011-12-05T14:34:49.037-08:00It makes sense up to a point. That point being the...It makes sense up to a point. That point being the great unknowns of various derivatives: debt default swaps, CDOs, etc. - none of which I understand. <br /><br />Whose going to be the AIGs (bag-holders) this time? Does the world just set back and let this problem play out to the very end - even if it means bringing down multiple financial corporations around the world??<br /><br />It's Williamhttps://www.blogger.com/profile/04418491109912775561noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-14684696179475561972011-12-05T14:30:37.057-08:002011-12-05T14:30:37.057-08:00Market based solution is fundamentally pro-cyclica...Market based solution is fundamentally pro-cyclical. In good times, the market is happy to chase yield and drive down price. There by encouraging debtors to take on more debt. In bad time, the market abandons all hope and freezes credit when the world needs credit the most. <br /><br />In theory and in practice, market based solution had never worked in *extreme* situations. <br /><br />狂猪https://www.blogger.com/profile/16599529315620633684noreply@blogger.com