At some point in the very near future (emphasis on the word near) the grand experiment in Keynesian economics will come to a rapid and ugly end.The laws of mathematics can't be defied any more than can the law of gravity.
As Mike Shedlock patiently explains (for the umpteenth time):
European leaders have their heads in the sand, or perhaps up Treasury Secretary Tim Geithners' a$$ as it was Geithner who actually hatched the ballyhooed leveraged bailout scheme.
Yes, they have hatched a plan to use leverage, but that plan has enormous risks. Moreover, it is questionable at best the German supreme court will allow that plan to stand.
Even if the plan does stand, throwing trillions of Euros around just to prevent Greece from defaulting hardly seems like a sensible policy. The sensible policy would have been to let Greece default two years ago.
Yes, that's what I would recommend for the world's most difficult financial engineering task: rely on the schemes of a man -- Tim Geithner -- who couldn't figure out how to use TurboTax.
lol
ReplyDeleteSteve Liesman.
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