October 30, 2011
Some amusing weekend observations from TTMYGH’s Grant Williams: “The EFSF is basically an empty box filled with promises of money – many of them from the very people who are most likely to need to borrow that same money.
Should they need to borrow the money, they won’t be able to make good on their promises so there will be less money for them to borrow. Now the brain trust running Europe have decided, in their collective wisdom, to apply leverage to the non-existent money in the empty box that they have yet to actually borrow, so it can backstop even more of the hundreds of billions of Euros of sovereign debt issued by countries whose finances are in such dire straits that they either require the kind of robust growth that is hardly likely to materialize any time soon or the forgiveness by the holders of that debt of a large part of it….
Of course, granting Greece the package they did this past week, the Eurocrats have rather incredibly found yet another corner into which to back themselves.
You can hardly champion the ‘One Europe’ manifesto on the one hand but then, as the next country lines up at the counter, declare “No soup for you!” – but that seems to be the ‘plan’ at this stage.”
This article was posted: Sunday, October 30, 2011 at 4:05 am