When the facts change, I change my mind. What do you do? -- John Maynard Keynes

Sunday, January 15, 2012

Eurozone: austerity equals contraction

After the downgrades, now what for the Eurozone? Obviously, Merkel is still "out to lunch:"

Merkel says eurozone must act fast - FT.com: "German chancellor Angela Merkel has called on eurozone governments speedily to implement tough new fiscal rules after Standard & Poor’s downgraded the credit ratings of France and Austria and seven other second-tier sovereigns."

In other words, more "punishment" for the non-German Europeans (Greece, Italy, Spain, Portugal, Ireland, et al). How much more they can take only time will tell. But the inescapable truth is that the policy of austerity is a disaster. Austerity = Contraction. And Europe will continue spiraling down . . .


The Big Picture

Financial Crisis - The Telegraph

JohnTheCrowd.com | The Sailing Website

Craig Newmark - craigconnects