tag:blogger.com,1999:blog-7820485130017459619.post4815825315697381414..comments2023-10-24T01:46:47.151-07:00Comments on CynicusEconomicus: Default ExposureUnknownnoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7820485130017459619.post-36389319088170226522011-11-09T13:14:56.830-08:002011-11-09T13:14:56.830-08:00Weird. Why would the Eurozone countries not want ...Weird. Why would the Eurozone countries not want to share the pain with US banks? Best explanation I can hypothesise is that they would rather help known banks deal with a known haircut than allow pain to fall unpredictably within the international financial system, for fear that fear would then paralyse the whole system again. But surely that's too subtle for politicians trying to find any course of action at all that they can agree on?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7820485130017459619.post-42699213276163876732011-11-08T08:47:08.840-08:002011-11-08T08:47:08.840-08:00Yes, it is shabby, but politics and finance are a ...Yes, it is shabby, but politics and finance are a sleazy combination. Unbelievably large sums of money are at stake.<br /><br />Having watched this going on for years now, I can only foresee it going on for a whole lot longer. <br /><br />I guess the name of the game is to keep pushing the day of reckoning out into the future, whilst each individual financial institution manages its own position to minimise its long term loss whilst trying to maximise its short term gambles. I suspect its a game of pass the parcel.<br /><br />I expect the European pantomine to keep running until one countries electorate says 'cobblers to this' and defaults or pulls out of the Euro or both. It will have to be some kind of electorate driven event, as clearly the politicians will just try to keep the bailouts coming.<br /><br />Maybe the Greeks will be the first to get a chance in an election, but I suspect they love the EU and Euro an awful lot, as many of them have made a good living out of it for a few years. So, I don't think they will pull the plug but just keep fudging the numbers and bail out issue as staying in the Euro and its austerity package will be easier than going back to the Drachma and the austerity that will entail.Yorkienoreply@blogger.com