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

To BB+

Greece will default on its national debt.

Palabras de JEP, Premio Cervantes 2009

"Para volver al plano de la realidad irreal o de la irrealidad real en que los personajes del Quijote pueden ser al mismo tiempo lectores del Quijote, me gustaría que el Premio Cervantes hubiera sido para Cervantes. Cómo hubiera aliviado sus últimos años el recibirlo. Se sabe que el inmenso éxito de su libro en poco o nada remedió su penuria."