Why the EuroCrisis isn't being solved

1. Draghi: Merkel's New Sarkozy
Yet 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.
Merkelomics
Country 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.
Draghi's plan has the markets moving upward. This does not help the Greek bus
driver. If the Greek bus driver owned stock in the Athens Bus Company, the argument
could be made that he benefits from the strong market. He doesn't own stock in the
Athens Bus Company.
For well over a year I've blogged about the need for capital investment, economic
development and growth. Only recently have leaders started talking about it.
Tim Geithner, no country ever cut its way to prosperity. Madame Lagarde to Marie
Bartiromo, "...and then there's the multiplier effect."
In short, let's call this
Merkel's Last Stand The top "hit getter" on my blog.
http://slimviews.blogspot.com/2011/12/merkels-last-stand.html
The illustration that will illuminate the problem for those who enjoy metaphors is
Merkel and the Salesman
This is not a dirty joke. This explains why the Merkelomics isn't working, doesn't work,
won't work, and can't work.

2. http://sidestreetjournal.blogspot.com/2012/05/merkel-and-salesman.html
You might say, Merkel, can't fool the lion.
You Can't Fool the Lion
http://sidestreetjournal.blogspot.com/2011/12/you-cant-fool-lion.html
Regards,
Slim
Slimviews is an unfunded, unsupported (sometimes unsupportable), non-profit, and --
alas--unprofitable web log by Slim Fairview. Read my blog today or hear it from experts
in a month or two.
slimfairview@yahoo.com
Copyright (c) 2012 Slim Fairview
All rights reserved.