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it seems like the eonomies of the eurozone are in a hell of a lot better shape than the economy of the U.S.

Mitchell is an Australian and like Keen he keeps a close eye on the USA mostly because it is the 800 lb gorilla. He is definitely not partisan of US interests.

I agree that many, perhaps most, economies and societies in the eurozone are in much better shape than the USA, if taken as a whole and if the counter-cyclical effects of social welfare programs are considered. But as we have repeatedly seen on ET, there is a lot of NCE mind capture amongst governing elites.

Given that the current problems with Greece, Spain, Portugal, Ireland and, probalbly next, Italy appear largely to consist of trees being shaken by powerful financial corporations, such as Goldman Sachs. But it is precisely such powerful financial corporations that "Anglo Disease" NCE theories are designed to nurture and protect. Unless governments intervene Greece and other countries might not just get shaken down, the trees could be broken as well.

To make matters worse, apparently GS has sold the CDOs they wrote around the debt with which they fitted Greece out to Greek banks. Perhaps they have also sold short some of these instruments. I agree with MFM that the speculators, especially GS, need to get the living shit burned out of them. One way might be to declare the CDSs unenforceable due to fraudulent conveyance or other pretexts and then let Greece default on the loans. Not total repudiation but perhaps a 30% haircut. The important thing is that more pain falls on GS and other financial institutions than on the bottom 90% of the Greek population. If they blew up GS that would be a very good thing from my point of view.

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Thu Feb 11th, 2010 at 04:23:46 PM EST
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Yes. I've been dreaming about how Europe can stick it to GS and friends. But that might bring the UK down ;)

Hey, Grandma Moses started late!
by LEP on Thu Feb 11th, 2010 at 04:34:19 PM EST
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But that might bring the UK City down ;)

Fixed it.  Then the rest of the country could breathe.   :-)

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Thu Feb 11th, 2010 at 05:02:58 PM EST
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