11 May, 2010

The Euro: Dirty Harry Trichet


I'm not a great fan of the near $1 trillion 'shock and awe' rescue package of the euro, given that it was more of a rescue for the banks than for the member countries, and that all it does is buy time, rather than address the fundamental problems.

But I did enjoy this, from Daniel W Drezner in Foreign Policy

"I know what you're thinking. Is this my last rescue package, or do I have another source of credit in reserve? Well, to tell the truth, in all this excitement I kinda lost track myself. But being this is a €720bn rescue package, the most powerful one in the world, and would wipe away any short position you've taken in the past week, you've got to ask yourself one question. 'Do I feel lucky?' Well do you, punk?"

We'll see. In my experience the markets get satisfied and warm for a bit, then a bit itchy, then a bit have-a-go.

But maybe they'll turn on Britain first.

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