Friday, February 20, 2009

"The Epicenter of Confusion"

Eloi Laurent takes a dark view of Europe's response to the crisis. Paul Krugman is equally bleak about the US. No hope in sight anywhere.

ADDENDUM: Simon Johnson backs up Laurent with data on CDS spreads for European banks--through the roof.

2 comments:

James said...

George Soros was in the Ft yesterday calling for a Eurobond as well (i.e. like Laurent).

Arthur Goldhammer said...

Well, I'm no George Soros, but I've been saying for some time that the ECB needs to issue a Eurobond and Eurobills and also needs to accept distressed sovereign debt as collateral (Laurent's other suggestion). As Eloi says, it doesn't take a financial genius or Zurich gnome to come up with these solutions; where there's a will there's a way. It's the will that's lacking.