Draghi: Merkels New SarkozyYet again!Colloquial:Countries borrow money.They invest the money in economic development.The economy grows.Revenues increase.They repay the bonds with the increased revenues.MerkelomicsCountry borrow money with strict conditions.They pay their bills.They fire people, cut wages, raise taxes.The economy contracts.Revenues decline.The loans come due.They borrow more money with strict conditions to pay the bills.Draghis plan has the markets moving upward. This does not help the Greek busdriver. If the Greek bus driver owned stock in the Athens Bus Company, the argumentcould be made that he benefits from the strong market. He doesnt own stock in theAthens Bus Company.For well over a year Ive blogged about the need for capital investment, economicdevelopment and growth. Only recently have leaders started talking about it.Tim Geithner, no country ever cut its way to prosperity. Madame Lagarde to MarieBartiromo, "...and then theres the multiplier effect."In short, lets call thisMerkels Last Stand The top "hit getter" on my blog.http://slimviews.blogspot.com/2011/12/merkels-last-stand.htmlThe illustration that will illuminate the problem for those who enjoy metaphors isMerkel and the SalesmanThis is not a dirty joke. This explains why the Merkelomics isnt working, doesnt work,wont work, and cant work.
http://sidestreetjournal.blogspot.com/2012/05/merkel-and-salesman.htmlYou might say, Merkel, cant fool the lion.You Cant Fool the Lionhttp://sidestreetjournal.blogspot.com/2011/12/you-cant-fool-lion.htmlRegards,SlimSlimviews is an unfunded, unsupported (sometimes unsupportable), non-profit, and --alas--unprofitable web log by Slim Fairview. Read my blog today or hear it from expertsin a month or firstname.lastname@example.orgCopyright (c) 2012 Slim FairviewAll rights reserved.