Straight down the rabbit hole goes Euroland!
The problem isn’t actually Greek debt, it’s the huge competitive imbalances between Germany/Northern Euroland and everyone else.
Until the Germans are willing to both consume far more and finance Southern Euroland debt through the ECB as lender of last resort, Euroland will continue to stagnate.
The further insistence on austerity, at a time when much more stimulus is needed, insures that we’ll be back revisiting the same dilemma in 3 months and in 3 years.
Gorilla says: “Organized default has nothing on disorganized Deutschland!”
Tags: Euroland