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But when the new iteration begins, the mastery will fail.

But I suppose "the recession part of the cycle is an outlier", especially if you're France and Germany.

And if you're France or Germany, violating the Debt part of the GSP is okay even in the growth part of the cycle.

Of all the ways of organizing banking, the worst is the one we have today — Mervyn King, 25 October 2010

by Carrie (migeru at eurotrib dot com) on Fri Jan 7th, 2011 at 12:02:01 PM EST
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But I suppose "the recession part of the cycle is an outlier"

Of course. Only in extreme and non-repeatable circumstances should private debt be socialised, so as to minimise moral hazard.

So you have to pretend that the crash is an extreme and non-repeatable circumstance that nobody could have foreseen and which will never occur again.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Fri Jan 7th, 2011 at 02:42:03 PM EST
[ Parent ]

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