The EuroMess is not the Debt Crisis
The EuroMess is the mismanagement of the EuroCrisis.
I said the other day, The EuroCrats are acting like monkeys chasing their own tails and chattering with delight when they catch them. Now the aren't even catching their tails. Still, they are chattering with delight.
The EuroCrats Craft a new plan
Broad ambitions but short on specifics. Still, they are delighted because it is a comprehensive plan.
It certainly is a safe plan, even if it won't work. How do I know it won't work?
Let us review the plan:
Higher Bank Capitalisation.
Beef up the bailout fund.
Bailout for Greece.
Did they do this before? Yes.
Did it work?
How do the investors feel?
The investors were elated when the new plan was announced, but their elation was deflated when they learned there are no details.
There is, however, a technical term for this: Technical Finalisation".
But wait, there's more!
The EuroCrats rely on Private Investors to provide hundreds of billions of Euros that the fund cannot replace.
Berlin demands Private Investors take bigger losses.
Can anyone make space in his head for anyone who tries to explain how Germany is a help to the EuroZone?
I get the impression I am watching a family get together where the Rich Relatives eat the food that the Poor Relatives provided to curry favour. For what reason I will never know.
"Mama may have; Papa may have; but God bless the child that's got his own--that's got his own." God Bless the Child--Billie Holiday.
"When France and Germany agree on a plan, big things are possible"
Is this Tim Geithner the Economist or Tim Geithner the Brush salesman?
China, Russia, India, Brazil offer to help.
That would appear to be a good thing. Still, that is short on Technical Finalisation. Let us all wait to see what happens. [ This does beg the question: If Emerging Nations contribute to the bailout, what happens to the economies of the emerging nations? ]
"There are no unintended consequences. Only unwanted consequences." Slim Faiview. From The Quotations of Slim Fairview Copyright (c) 2011 Slim Fairview
Please refer to my blog for more details on these and other matters related to the failure of the EuroCrats to solve the crisis.
In short, they have "credentials".
Why then the failure? Because they are clutching retentively to their ideologies. The problem will never be solved by a plan. Only by a project. Nouns do not solve problems. Verbs solve problems. We need technocrats. Not ideologues.
Copyright (c) 2011 Slim Fairview