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View Diary: Krugman and the Paradox of Austerity (93 comments)

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  •  Simply Put -- a Shell Game? (1+ / 0-)
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    upstate NY

    The pea being the cash that gets shuffled by sleight of hand, passing through Greece's fingers, disappears and can't be found because it's "sleighted" into those two countries' banks.

    The dupe is fooled again.

    Readers & Book Lovers Pull up a chair! You're never too old to be a Meta Groupie

    by Limelite on Tue Sep 20, 2011 at 08:27:16 AM PDT

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    •  The dupes are the European public (1+ / 0-)
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      but surely the outlying countries with low budget deficits know they are being taken. This is why Austria is screaming, why Slovakia refuses to go along, why Finland is demanding collateral, why Holland has a rightwing bigoted resurgence.

      They know there is a fiscal transfer going on from taxpayer pockets in surplus countries to the banks of the heavyweights, who are leaning on their smaller brethren.

      Frankly, it's a putrid scene, and the very people screaming moral hazard and crying loudest about having their pockets picked are the ones who are being recapitalized. This is why it's a distraction. So when they blast Iceland for not recapitalizing it's own banks as the Irish did, they should look in the mirror at their own refusal to recapitalize their own banks. Remember, 1 hour before Lehman collapsed, German state-owned bank KfW loaned Lehman $300 million dollars! An act of absolute financial idiocy. But the German banks were topped off to the tune of $30 billion by the American taxpayer through TARP and AIG. It seems there are a lot of powerful entities in this world crying morals and ethics and foul behavior, but they are the ones who are always refusing to pay their own debts and instead installing spectral Marshall Plans that don't appear until the institutions of government run dry.

      There are two kinds of people in this world. The kind who divide the world into two kinds of people, and the kind who don't.

      by upstate NY on Tue Sep 20, 2011 at 09:05:00 AM PDT

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