Death Star Economics



The cure against a German Europe: inefficiency

Just a general question to start the week off… What kind of world do we live in, when Kim Kardashian is attending the White House Correspondence Dinner? Excuse me?! What?!? read article

In Spain, which is also double-dipping, Mariano Rajoy is holding onto every last straw to avoid a EU-led bailout program and calling for “structural reforms”. What a good plan, after all S&P downgraded more or less every Spanish bank, including Santander, this morning. Of course, it his mortgages that cause the headache and so the structural reform of the moment is the creation of a ‘bad bank’-asset dump. Rajoy, however, refuses to call the program a ‘bad bank’, because Spanish banks may only participate in the scheme if they have “sufficient loan provisions” in place. Reminds me of this whole “you need to have done internships to get an internship” kind of thing… Conclusion on Spanish scheme: it’s an inefficient bad bank. Well done. Being against the German domination in Brussels is one thing, but this is taking it too far. read article

Nicolas Sarkozy took his new found belief in protectionism a step further last night, saying

I don’t want France to dilute itself into globalization […] Europe has let the idea of the Nation weaken too much.”

I was sure we wouldn’t need to have this discussion anymore after all the bailing out and holding hands. But let’s not forget that he’s a short man about to lose the only thing that makes him seem taller. read article

Meanwhile, Romania is waiting to see a new cabinet shaping up in this coming week. The country’s government collapsed on Friday as the result of a confidence vote and caused the IMF to rethink its €5bn aid packageread article

A nice read for all those Londoners who are not really from here, i.e. most of us: Adrian Gill on the city, “the most successful mongrel casserole anywhere”… read article

Putting the fun back into recession, here’s an interactive map of Europe. view graphic

So long.

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