Markets: Help! We're broke!
Governments: Here's a bailout...
Markets: Oooh - just look at all the new public debt. We're not having that. You might default on us.
I cannot help feeling that "the market" is looking on in shopcked bemusement that we are bailing out the banks in the first place. "We can't trust people who are that stupid now can we"? notes from no w here
But when it is ok to run 50% deficits at one side of the Atlantic but it is not ok to run 12% deficits at the other end, I must concede that something's wrong... Vencit omnia veritas.
50% refers to total debt to GDP.
