Thursday, August 18, 2011

Politicians Busy Solving Europe's Problems

You knew when various European countries banned short selling that the politicians were beginning to panic. Fix it! Fix it!

What is unfortunate is that folks in the investment community are on the sidelines urging them on. They want the taxpayers, once again, to step up and bankroll the banks, governments and whoever else has made serious, gigantic, mistakes and need financial help. Why? Why not let them go under? Why not force Greece, Spain, Portugal, Italy, whoever to do workouts with their creditors. The creditors loaned them money (or bought the debt with eyes wide open). Why is this the taxpayers' (of other countries) problem?

The usual tactic to justify putting taxpayers on the hook is to argue that, absent a bailout, the world is coming to an end. Really? How do they know that? Are they objective in this assessment?

The ECB should quit meeting. Merkel and Sarcozy should take a 16 month vacation. Let the profligate borrowers go bust or do workouts with their lenders and leave the taxpayers alone.

No comments: