The Worse A Situation Becomes The Less

The Eurozone Status Quo Is Neither Tolerable Nor Stable. Mainstream Economists Would Call It An Inferior Equilibrium; I Call It A Nightmare - One That Is Inflicting Tremendous Pain And Suffering That Could Be Easily Avoided If The Misconceptions And Taboos That Sustain It Were Dispelled.

Giving Government Aid To A Bank Basically Transforms It Into A Utility. The Huge Salaries In This Sector Are Only A Symptom Of A More Profound Misalignment. The Profitability Of The Finance Industry Has Been Excessive. [...] That Was Absurd.

The Key Problem Is The Debt Restructuring In The Euro Zone. As Long As The Debt Burden Is Not Reduced, There Is No Chance Of The Weaker Eu Countries Regaining Competitiveness.

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

Money Values Do Not Simply Mirror The State Of Affairs In The Real World; Valuation Is A Positive Act That Makes An Impact On The Course Of Events. Monetary And Real Phenomena Are Connected In A Reflexive Fashion; That Is, They Influence Each Other Mutually. The Reflexive Relationship Manifests Itself Most Clearly In The Use And Abuse Of Credit.