I used to read the Economist when I was in graduate school, but I gave it up because it is currently as stimulating as reading Time magazine. Someone sent me a link to an online article from the Economist, and this quote caught my eye:
"Lastly, if the euro is to survive, creditor countries need to give more aid to deficit countries. They could do this directly, or the ECB could provide liquidity to banks or buy up government bonds before they fall too far."
Thinking about the direct comment, that would be the course taken by using the instrument of a German sovereign wealth fund, which we have posted about before. Such a fund would be looking for returns, and potential investees would have to present their cases just as private entities would have to do. Ideas with good economics would earn the capital investment. The interests of the German state in continuing the euro experiment would advanced through their own oversight and control. There would be no intellectual policy fog or dead weight cost leakage from the ECB, IMF, or other bureaucracies.
The equity markets are looking a bit queasy as the European policy machine continues to founder.
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