Comments for The European Central Bank Is Strangling the Eurozone at http://www.cepr.net , comment 1 to 8 out of 8 comments http://www.cepr.net Wed, 19 Jun 2013 19:00:08 +0100 FeedCreator 1.7.3 http://www.cepr.net/index.php/beat-the-press/the-european-central-bank-is-strangling-the-eurozone/#comment-316 I think that when California defaults on its bonds, the bond holders, whoever they may be, will lose their investment, unless of course the bonds are hedged through some derivative. In which case, the insurer will lose their money, and if the insurer doesn't have the money, and it is a too big to fail company, then the tax payers will foot the bill once again. So back to the subject of this blog, Greece, who holds the debt for Greece? The European Central Bank? @scathew, I suppose you are right! Although I try to see what the root of problems are, as it is there I believe the remedies must found. Sure, I can give you a pill for your high blood pressure, but if you don't lay off the salt and fat,and get some exercise, you are still going to die. The PIIGS driving the speeding car are drunk with credit, and corruption, it is time to call in MADD. :-))) - richard Wed, 28 Apr 2010 17:55:33 +0100 http://www.cepr.net/index.php/beat-the-press/the-european-central-bank-is-strangling-the-eurozone/#comment-315 Ron, if "California were to default on its bonds", former governor Reagan would rise up from his grave singing. Come to think of it, according to his faithful legions he already has risen from the grave and is sitting somewhere on the right hand of the Lord (whatever that means). - diesel Wed, 28 Apr 2010 17:52:47 +0100 http://www.cepr.net/index.php/beat-the-press/the-european-central-bank-is-strangling-the-eurozone/#comment-313 "Spain, the most important of the troubled countries, actually was running surpluses prior to the crisis." Do they have a property tax in Spain? They had a huge housing bubble, that could explains the surplus. If the states of the USA had seen the bubble they would have run huge surpluses. - floccina Wed, 28 Apr 2010 09:57:34 +0100 http://www.cepr.net/index.php/beat-the-press/the-european-central-bank-is-strangling-the-eurozone/#comment-312 Greece is unable print euros to pay off its bonds. The United States could print dollars to pay off its bonds, but the State of California cannot print dollars. So Greece (perhaps Spain as well) is more analogous to our states than to sovereign nations outside the European Union. Apparently, the EU lacks a mechanism and an obligation to provide assistance Greece. I wonder what might happen if California were to default on its bonds. - Ron Alley Wed, 28 Apr 2010 08:54:55 +0100 http://www.cepr.net/index.php/beat-the-press/the-european-central-bank-is-strangling-the-eurozone/#comment-310 It looks like the tough love Greece is getting is nothing but a requirement to return to the modern equivalent of the Gold Standard. - leo Wed, 28 Apr 2010 07:57:21 +0100 http://www.cepr.net/index.php/beat-the-press/the-european-central-bank-is-strangling-the-eurozone/#comment-308 While I can't argue one way or another about the fact that these countries are "tax scoundrels", the issue with letting them fail is it can take down the entire Eurozone. So, saying, "fix the corruption" (ie: do nothing until the corruption is fixed) is akin to holding your ground in a crosswalk as a car barrels toward you because, "you have right of way" - a bit of insanity. In short, I don't argue that those responsible need to be held responsible ultimately, just that in the mean time you've got to get the hell off the crosswalk. - scathew Wed, 28 Apr 2010 05:33:35 +0100 http://www.cepr.net/index.php/beat-the-press/the-european-central-bank-is-strangling-the-eurozone/#comment-306 This thing with fiat money, Ridden with superstition, That inflation trumps deflation, As the greater evil, Embedded in the lore, That printing more money, Causes disintegration, Of everything real. As Milton Friedman said, Keep the money supply growing, At the same rate of output, That yields full employment. So when velocity falls, With a savings glut, Pump up M with cash, To finance a fiscal, Rise from ruin and rut. - izzatzo Wed, 28 Apr 2010 03:33:36 +0100 http://www.cepr.net/index.php/beat-the-press/the-european-central-bank-is-strangling-the-eurozone/#comment-304 Why should the European Central Bank print money to bail the governements of countries where the citizenry are notorious for not paying taxes? http://www.time.com/time/magazine/article/0,9171,1958721,00.html Fix the corruption and the rest will take care of itself. The same holds true in this country! - richard Wed, 28 Apr 2010 03:13:59 +0100