So what’s happening? Oh, boy:
but then he gets interesting:
i guess the liquidity draining into these safe bets is fleeing "risk"
errrr ..safe default bet ...
but what if german elites allow
a zonal acceleration of product price inflation
in particular one driven by
german wage increase acceleration
"This chart shows a euro on the verge of imploding."
i guess he means if you combine it with a chart of spanish bonds
"If the ECB can’t change this perception very, very soon
this goose is cooked"
i simply don't see a time limit here on any ECB rescue ?
why need the ECB act now
at least not until the greeks hand gets played out
and that
could take a couple three months
and then
only if the nyet parties "win"
and even then
only if the ECB is dedicated
to holding the zone intact ..
is that really sound ECB policy ?
no lehmans allowed !!
in other words
must the greek re vote really be seen as a call on the ECB's cards ?
sure it will be played that way ....but
and at any rate
what if the ECB isn't bluffing about greece
anymore then paulson et al bluffed about lehman ?
what if the ECB has decided to make an example of greece ?
what if the ECB wants a crisis and a scape goat
to salvage the rest of the zone ?
consider this:
what sort of message is sent
if the conclusion is the outer most piglet gets rolled off the bed
b4 the big mama sow (aka the ECB)
stops shifting her position
is it a serious threat to future greeces ?
is this enough cred ?
posit this assumption:
no state wanting to be that outer player
all future high fiscal and BOP deficit states
and
all states presiding over higher then median wage growth
will crowd toward the center
and what if
the ECB figures the longer the pressure is applied
to all these club med piglets big and small
the more concessions will seep out of em
more job market streamlining and transfer system pruning
whats simple
the white hat possible that pk wants
where the ECB snatches miss greece from the tracks in time
whats not simple
the coming real event roll out
