Friday, December 9, 2011

Angela and Nicolas's Excellent Adventure

So, the dynamic duo have saved the euro yet again. Or have they? David Cameron is out, but no surprise there. The Brits--Tories especially--were never in, and they're not about to sign on now when the costs are clear and the benefits elusive. So, since a treaty change requires unity, the fallback is agreement by the Eurozone 17, which seems to be in hand. Mario Draghi says he's pleased, but he is still holding the purse strings tight. And his words yesterday were not very reassuring, as I noted in a previous post

Many analysts were stunned by what appeared to be Mr. Draghi’s turnaround, which they said would make it even more crucial for the European heads of state to forge a market-calming master plan at their summit meeting — as unlikely as such an outcome is starting to look.
“While Draghi had opened the door for more E.C.B. support last week, he closed it again today,” Carsten Brzeski, an economist at the Dutch bank ING, wrote in a note to clients. “According to Draghi, it was up to politicians to solve the debt crisis.”

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