Nouriel Roubini Channels Me

I'm so flattered I don't know what to do..

See this.

I know Professor Roubini never saw anything I wrote.  He did this independently - and I'm still flattered to be on a level with him. 

One should perhaps not underestimate the European capacity to muddle through. 

•  The banks pretend their loans are sound and that they are well capitalized.  But they won't lend more to Greeks.
•  The EU & ECB pretend the banks are sound and well capitalized and that the Greeks can pay their debt.  But it's beyond their own capacity to loan more money to Greeks. 
•  The IMF needs something to do and will lend money to anybody.  But of course with conditions which they ask the Greeks to pretend to meet. 
•  The Greeks pretend to meet those conditions and receive even more loans which they have no hope of repaying.  
•  The ECB pretends to help the IMF - and everyone pretends to believe it's not beyond their capacity to help.
•  The banks, the EU, the ECB, the IMF all pretend there can be no default if they don't themselves declare one to be in default.
•  There is no need for anybody to pretend that there will ever be any "austerity" in the EU. The Spanish have already put an end to that thinking as everybody already knows from the IMF experience in Argentina.

Result -  like small children who have yet to be found out and will not have to come clean - everybody is happy.  Where else might we expect to find a similar example?



See also
http://www.creditwritedowns.com/2011/06/destroying-periphery-bailing-out-banks.html