Streetwise Professor

December 12, 2011

Economic Policy By Escher–or an ’80s LA Hard Punk Band

Filed under: Economics,Financial Crisis II,Politics — The Professor @ 10:27 pm

Trying to follow the latest European approaches to the sovereign debt crisis is enough to induce vertigo.

Earlier today I noted that Sarko said that European banks should buy more European government  debt.  A while later I read Yalman Onaran’s article in Bloomberg, which said that southern European banks were looking to their governments to bail them out:

European banks turning to their governments to raise required capital could trigger a downward spiral of declining sovereign-debt prices and further losses for the lenders.

The European Banking Authority ordered the region’s banks on Dec. 8 to raise 115 billion euros ($154 billion) by June. Faced with dwindling profits and unable to tap capital markets to sell new shares, firms may be forced to seek government help. About 70 percent of the capital requirement falls on lenders in Spain, Greece, Italy and Portugal, countries struggling to convince the world they can pay their debts.

So the banks bail out the governments and the governments bail out the banks.

It seems that Escher had sketched out these plans in some detail years ago:

And if you know what band I’m referring to: get your mind out of the gutter!

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  1. They’re running “Wild In The Streets” over there in Europe in a circuitous manner?

    Comment by Bob — December 12, 2011 @ 11:56 pm

  2. @Bob–LOL. Nicely oblique allusion.

    The ProfessorComment by The Professor — December 13, 2011 @ 12:18 pm


    SWP fail — Sen. Levin this week. Do you stand corrected now, or is everyone who says NDAA applies to U.S. citizens still a raving moonbat?

    Comment by Mr. X — December 13, 2011 @ 1:08 pm

  4. Here’s the link, so you can’t slither out of this one and bla bla bla about ‘characterizations’ and ‘game of telephone’

    ‘Read the damn blog — how about watch the damn video!’

    Peace out SWP, zombies. Oceania has always been at war with Eurasia.

    Comment by Mr. X — December 13, 2011 @ 1:15 pm

  5. Gotta admit that’s a brilliant metaphor you found there, SWP.

    Comment by Sublime Oblivion — December 13, 2011 @ 4:34 pm

  6. Thanks, S/O. Sorry about the delayed reply. Recovering from the shock.

    The ProfessorComment by The Professor — December 14, 2011 @ 10:00 am

  7. Presumably still in shock about this:

    and this:

    Well regarding NDAA, we’ve all been wrong at some time.

    Comment by Mr. X — December 14, 2011 @ 1:52 pm

  8. Uhm, re Corzine–not, actually.

    The ProfessorComment by The Professor — December 14, 2011 @ 2:52 pm

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