If We Carry This Line Of Argument

This Is The Joint Responsibility Of Everyone Who Was Involved In The Introduction Of The Euro Without Understanding The Consequences. When The Euro Was Introduced, The Regulators Allowed Banks To Buy Unlimited Amounts Of Government Bonds Without Setting Aside Any Equity Capital. And The European Central Bank Discounted All Government Bonds On Equal Terms. So Commercial Banks Found It Advantageous To Accumulate The Bonds Of The Weaker Countries To Earn A Few Extra Basis Points.

Misconceptions Play A Prominent Role In My View Of The World.

My Conceptual Framework, Which Basically Emphasizes The Importance Of Misconceptions, Makes Me Extremely Critical Of My Own Decisions. I Know That I Am Bound To Be Wrong, And Therefore Am More Likely To Correct My Own Mistakes.

There Is No Doubt That The Countries That Now Have A Very Large Debt Have Not Introduced The Kind Of Structural Reforms That Germany Did And Are Therefore At A Disadvantage. But The Problem Is That This Disadvantage Is Becoming Even More Pronounced Through The Punitive Policies In Place.

Every Bubble Has Two Components: Something - Some Real Trend, And A Misconception About That Trend.