Posted in Bailout, Big Government, Debt, Europe, Financial Crisis, Fiscal Crisis, Government Spending, Greece, tagged Bailouts, Big Government, Debt, Europe, Financial Crisis, Fiscal Crisis, Greece on October 20, 2011 |
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I would have structured this flowchart differently, for reasons I discuss in this post, but this is pretty good picture of why Europe is in trouble.
They say all roads lead to Rome, and this flowchart shows all roads lead to a banking crisis (see this post to understand why).
But not all banking crises are created equal. A bailout (the left column) would inflate the debt bubble and make the ultimate crisis much more devastating.
Cutting Greece loose (the middle column) is the best approach, in part because it would have a sobering effect on other European nations that would like to mooch off the European Union (German taxpayers) or International Monetary Fund (American taxpayers).
Just imagine, by the way, how much better things would be today if Greece had been unable to access bailout money and instead had been forced to spend the last two years implementing real reform. That’s why I stand by everything I wrote in my first post about the Greek mess.
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The person who put together this video obviously had a lot of time on his hands, but he also deserves praise for coming up with something that is both amusing and eerily disturbing.
I came of age during the Carter years, and this video accurately captures the moralizing and hectoring tone of Carter’s speeches – and Obama’s speeches.
But watch at your own risk. If you have nightmares about the 1970s, don’t blame me.
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