The most recent nonsense making the rounds is that the euro zone should allow the European Financial Stability Facility to borrow, increasing its available resources and using taxpayers’ pledged €440 billion ($597 billion) as a sort of capital base. The notion is that this would ensure bailout facilities have sufficient “firepower” to “shock and awe” the doomsayers into a more sanguine state of mind. I use the quotation marks because such phrases are just shorthand for pumping up moral hazard.
— Euro Zone’s Most Dangerous Delusion - WSJ.com
Short URL for this post: http://tmblr.co/ZbwhbyA3mZp7
