| And another thing... |
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| Written by Junksmith | |
| Thursday, 02 October 2008 | |
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The Guardian's Will Hutton believes the only viable British Paulson plan - bar a £500bn-plus international loan - may require us to join the euro to win the support of the whole of the European economy and the ECB as part of a pan-EU initiative to create `good banks` for Europe. Just goes to show, sometimes the cure's worse than the complaint! Comments (1)
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Even Paul Krugman says
“There’s a reason Paulson et al had such a hard time communicating the case for their plan — they didn’t have a very good case..... they’ve never been able to explain clearly why buying up bad mortgage assets at market prices will solve the credit crunch. The Wise Men, as far as I can tell, have never had a clear idea of what they’re doing”.
http://krugman.blogs.nytimes.com/2008/10/01/bailout-narratives/
And Ambrose Evans-Pritchard thinks
“It turns out that European regulators have allowed even greater use of
"off-books" chicanery than the Americans. Mr Paulson may have saved Europe.
After years of acquiescence, the markets have started to ask whether the euro
zone has the machinery to launch a Paulson-style rescue in a fast-moving crisis.
Who has the authority to take charge? The ECB is not allowed to bail out
countries under EU treaty law. The Stability Pact bans the sort of fiscal blitz
that has kept America afloat.”
We are fast approaching the moment when events decide whether Europe
will bind together to save monetary union, or fracture into angry camps. Will
the Teutons bail out Club Med? If not, check those serial numbers on your euro
notes for the country of issue.”
http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/3118994/Financial-Crisis-So-much-for-tirades-against-American-greed.html
Truly the Paulson and Bernanke double act may well have done EU a favour