Comments on: Sunday Is “D Day” For The European Union

By: Why You Need Devaluation - An Open Letter To The People Of Estonia | Bear Market Investments

Sun, 08 Mar 2009 20:41:51 +0000

[...] type arrangements, so the only realistic exit strategy is devaluation and Eurozone membership, as I explain in this post (and this [...]

By: The EU’s weekend emergency | Nosemonkey’s EUtopia

The EU’s weekend emergency | Nosemonkey’s EUtopia — Sat, 28 Feb 2009 12:59:36 +0000

[...] Economist article and leader have been followed up by a couple of posts at Fistful that are well worth a gander – the first containing proposals to get the EU out [...]

By: Oliver

Oliver — Sat, 28 Feb 2009 11:00:06 +0000

Will Irish banks or Italy be cheap? Although in the case of banks the saviors can take ownership of the banks.

By: AL

AL — Sat, 28 Feb 2009 10:51:58 +0000

Hi, Edward:

I would like to note that public debt of East European countries is quite minuscule, usually 10-20 billion per country. For single EU bailout of major banks (20-30 B Euro per event) EU could easily refinance maturing bonds of whole E. Europe for probably two years. It would be much cheaper than deal with consequences of CDS payments in case of their default.

By: Hettie

Hettie — Fri, 27 Feb 2009 19:25:15 +0000

Thanks Edward.

By: Will it be a different world on the Ides of March? | afoe | A Fistful of Euros | European Opinion

Fri, 27 Feb 2009 18:12:59 +0000

[...] The weekend emergency EU summit will have to deal with the issue. We don’t know if Edward’s proposals are circulating among the pre-summit position [...]

By: Edward Hugh

Edward Hugh — Fri, 27 Feb 2009 17:29:08 +0000

Hello Hettie,

“I would like to translate this post into Hungarian and post it on my blog. Would you give me permission to do it? I would of course credit you and AFOE.”

Of course Hettie, go right ahead. And good luck.

Edward

By: Hettie

Hettie — Fri, 27 Feb 2009 14:20:17 +0000

Hi Edward

I would like to translate this post into Hungarian and post it on my blog. Would you give me permission to do it? I would of course credit you and AFOE.

Thanks

hettie

By: Doesn't matter

Doesn't matter — Fri, 27 Feb 2009 13:24:30 +0000

This is just all so depressing. It now turns out that we just sank hundreds of billions of Euros in the last decades in the East in an unsustainable model of growth. Bascially, a model without any meaningful fundament. And the cure? Sinking even more money. Great!

Wonderful, this mess brings us all down. The idea of a Eurobond makes me want to vomit. Just let us keep on promoting economic and fiscal irresponsibility and blatant free riding. How do we make a currency area work when we now provide even more incentives to ignore budget deficits because everyone can really on a few strong and disciplined countries, when countries with (comparably) solid public finances pay carry more and more of the burden? This is the point where you’re asking just too much.

I can only hope for drastic political consequences after this has been cleaned up. Those who pay must get to call the shots. That is, if we survive this at all.

By: Oliver

Oliver — Fri, 27 Feb 2009 13:07:49 +0000

What you cannot do is expecting the western taxpayers to subsidize exporting jobs. If this is to happen those benefiting will have to accept that those paying the bill will tell them how to set their tax rates and how to make spend their tax revenues. This is not going to be received well anywhere.