Independence, Transparency and Accuntability

Ben Bernanke

Now comes the rescue of the rescuers

Our global debt mechanics are looking increasingly like a Ponzi scheme

"Crises are the inevitable result of a build-up of macroeconomic, financial, and policy risks and vulnerabilities: assets bubbles, excessive risk-taking and leverage, credit booms, loose money, lack of proper supervision and regulation of the financial system, greed, and risky investments by banks and other financial institutions."

"[Additionally] a practical definition of a financial crisis is an event that forces policy officials to spend a long weekend trying desperately to announce a new bailout package in order to avoid national and global panic before the markets open on Monday. In the past years, such weekend all-nighters dealt with the needed bailouts of private firms – Bear Stearns, Fannie Mae and Freddie Mac, Lehman Brothers, AIG, bank rescues, etc."

According to Eichengreen:

The last few weeks have been the most amazing – and important – period of the euro’s 11-year existence. First came the Greek crisis, followed by the Greek bailout. When the crisis spread to Portugal and Spain, there was the $1 trillion rescue. Finally, there were unprecedented purchases of Spanish, Portuguese, Greek, and Irish bonds by the European Central Bank. All of this was unimaginable a month ago.

Some Lessons

A More Perfect Monetary Union - Balcerowicz

Greek Lessons for the World Economy - Dani Rodrick

Buidilng on Greek-Turkish Detente - Larrabee and Ries

Inflation or Default

"There are only two solutions to the sovereign debt crisis — raise taxes or cut spending — but the political gridlock may prevent either from happening"

Pasado y futuro de las democracias

Pasado y futuro de las democracias por Jesús Silva-Herzog Márquez