In a piece on BLOOMBERG yesterday, the able economist Luigi Zingales wrote an article discussing how a BANKING UNION is the last way to save the EURO. I will not argue the merits of Zingales proposal but wish to use a quote from his writing:
“The Euro’s founders designed this game of chicken on purpose,hoping that in a crisis either the periphery countries would blink and relinquish their sovereignty or Germany would cave and open its coffers.”
This is about as honest an assessment as we are going to get about the present state of the EU. It appears that Mario Draghi has been left with the task of landing a jumbo jet on the deck of an aircraft carrier. Will sovereignty be surrendered for access to the German national Treasury ? The markets are getting edgy as they want a genuine answer and time is getting short. Not only the markets want to know but the Obama team is anxious and pushing for more than a band-aid approach to policy making.
http://yrah53.wordpress.com/2012/07/31/games/
Banking Union Is Last Gambit to Save Euro Dream
http://www.bloomberg.com/news/2012-07-29/banking-union-is-last-gambit-to-save-euro-dream.html
This is about as honest an assessment as we are going to get about the present state of the EU. It appears that Mario Draghi has been left with the task of landing a jumbo jet on the deck of an aircraft carrier. Will sovereignty be surrendered for access to the German national Treasury ? The markets are getting edgy as they want a genuine answer and time is getting short. Not only the markets want to know but the Obama team is anxious and pushing for more than a band-aid approach to policy making.
http://yrah53.wordpress.com/2012/07/31/games/
Banking Union Is Last Gambit to Save Euro Dream
http://www.bloomberg.com/news/2012-07-29/banking-union-is-last-gambit-to-save-euro-dream.html
Posts
