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Title: Eurodämmerung
Source:
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URL Source: http://krugman.blogs.nytimes.com/
Published: May 15, 2012
Author: By PAUL KRUGMAN
Post Date: 2012-05-15 12:37:20 by tom007
Keywords: None
Views: 87
Comments: 3
Eurodämmerung Some of us have been talking it over, and here’s what we think the end game looks like: 1. Greek euro exit, very possibly next month. 2. Huge withdrawals from Spanish and Italian banks, as depositors try to move their money to Germany. 3a. Maybe, just possibly, de facto controls, with banks forbidden to transfer deposits out of country and limits on cash withdrawals. 3b. Alternatively, or maybe in tandem, huge draws on ECB credit to keep the banks from collapsing. 4a. Germany has a choice. Accept huge indirect public claims on Italy and Spain, plus a drastic revision of strategy — basically, to give Spain in particular any hope you need both guarantees on its debt to hold borrowing costs down and a higher eurozone inflation target to make relative price adjustment possible; or: 4b. End of the euro. And we’re talking about months, not years, for this to play out.
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#1. To: tom007 (#0)
Krugman is an idiot and a traitor, but even an idiot and a traitor can't help but be right every once in a while.
I sense a disturbance in the farce. Much gnashing will ensue.
His timeframe is too short.
An old lonely slave comes back from the grave Nice tag.
#2. To: Turtle (#1)
Searching... searching... searching
For his master who's long gone on
#3. To: Turtle (#1)
"Satan / Cheney in "08" 
The people of privilege will always risk their complete destruction rather than surrender any material part of their advantage." J.K. Galbraith
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