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On November 1, London's Telegraph contributor economist Liam Halligan headlined, "Why the latest eurozone bail-out is destined to fail within weeks," saying:
Last week's Eurozone deal is more smoke than fire. It "made Western Europe's grotesque debt crisis even more acute, sowing further infectious spores of confusion."
Bond vigilantes signaled what equity investors should have known. Debt liabilities can't be resolved by more of it. A bad situation gets worse. In addition, other important issues remain unresolved. Details so far are sketchy.
Cooler heads know taking on water faster than removing it means eventual sinking. Economies are like leaky vessels. When they're big enough or interconnected like in Europe, trouble and contagion follow, and nations aren't supplying life boats, at least not to their working classes.
What's needed "urgently is a clean, transparent Greek default - allowing this (failed) economy to leave the eurozone, reestablish a" devalued drachma, manage its own monetary and fiscal policies, and start down the road of recovery.
The same holds for other troubled Eurozone countries. Entrapped in its straightjacket's killing them. Combining 17 dissimilar economies under rigid euro rules failed. It's just a matter of time until the entire alliance crumbles. Troubled Greece should act first. Others can then follow.
Describing all "non-solutions" so far as "extend and pretend," Halligan ended saying he gives last week's deal "two weeks" to fail.
On October 31, Naked Capitalism headlined, "Europe's Economy is Falling Apart," saying:
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