Death Star Economics



You know it’s bad when it impacts the Eurovision Song Contest

The most exciting thing that happened yesterday was Goldman Sachs joining Twitter – for real. The first three tweets regarded an official ‘hello’, shareholder support and the firm’s global sustainability report. Nicest bank out there.

David Cameron‘s ability to learn from public embarrassment seems to be limited. Just about a month after being shunned by European politicians in Brussels, Dave is back on the failhorse, trying to solve the crisis of a currency union his country is not a part of. Moreover, the UK is not exactly known for it’s pro EU statements, so the call for closer integration is a bit off. For this week’s one and only context: the UK is backing the idea of eurobonds as well. read article

All that is angering Mario Draghi of the ECB, who likes his [relative] freedom and independence from the European governments, which would be cut down with every inch of closer fiscal integration. read article

Some Credit Suisse research suggests that Germany spent around €600bn on the euro crisis thus far, which is approximately a quarter of its GDP. Understandable that Angela Merkel wants to keep borrowing at a low cost instead of pooling money via euro bonds.

In Greece, most recently compared to an angsty teenager, the polls show just how confused the country is. While 70%of Greeks allegedly want their country to stay in the eurozone, the party that is trying to accomplish the very opposite (Syriza) is leading the polls with 30%. Time to step back and reconsider? read article

Both Spain and Greece have told their contestants in the Eurovision Song Contest not to win, as the countries don’t have the money to host the event next year:

Perhaps Spain should have taken a lesson from Poland, which isn’t even running this year because holding the European champonships is apparently a headache enough. read article

For some weekend reading, the Economist’s leader advocating “a limited version of federalism [as] a less miserable solution…” Now that just sounds great. On the other hand, like I’ve said before, half-baked is better than not baked at all, right?

Have a good weekend.


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