The End of the European Dream | 276 comments (274 topical, 2 editorial, 0 hidden)

Re: Perception... is in the eye of the bondholder (4.00 / 3)

If you really want to object though, the main point of the graphic is that the four yellow countries are rolling downhill, with the 'stable' slope as Germany. OR, alternatively, the greater 'weight' of Ireland and Spain are tilting the horizontal axis. However the first explanation seems more likely, as the numbers within the circles are slightly rotated to indicate rotation/rolling.

Precisely. This is narrative-pushing, using the numbers as a poor excuse.

Maybe there's a third interpretation, a sort of domino effect/snowballing down the German deficit slope.

Whichever way you interpret it, the visual presentation has precious little to do with the data.

Economics is politics by other means

by Carrie (migeru at eurotrib dot com) on Mon May 9th, 2011 at 09:03:43 AM EST
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Re: Perception... is in the eye of the bondholder (4.00 / 2)

My point was purely to highlight the immense amount owed to German banks. The rest of it is something I don't have an opinion about.

plus 100B to UK banks just for Ireland and we start to get an outline of cui bono.

by rootless2 on Mon May 9th, 2011 at 09:32:05 AM EST
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Re: Perception... is in the eye of the bondholder (4.00 / 3)

It is clear that this whole "rescue" mess is simply a way to transfer the losses to the public sector.

Under a default scenario the creditor countries still have to pick up the losses of their banks, so this is just a different way of achieving the same effect, just delayed so well-connected people have time to liquidate their positions...

Economics is politics by other means

by Carrie (migeru at eurotrib dot com) on Mon May 9th, 2011 at 09:35:35 AM EST
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Re: Perception... is in the eye of the bondholder (4.00 / 5)

And to hide the rescue from their publics.

Remember, the original sin here is depressing German wages in the name of competitiveness. Telling the German people that they have to bail out the German banks because they lent the money that should have been paid to them to cowboy banks is unlikely to do anyone's political career any good. I'm guessing German workers would have been much happier if it was them rather than Irish bankers who were buying the Mercedes.

by Colman (colman at eurotrib.com) on Mon May 9th, 2011 at 09:39:54 AM EST
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Re: Perception... is in the eye of the bondholder (4.00 / 4)

Right - the German government can now tell the gullible German public that the trouble is the reckless spending of Irish and Greeks, not the need to bail out a failed German banking industry.

by rootless2 on Mon May 9th, 2011 at 09:54:13 AM EST
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Re: Perception... is in the eye of the bondholder (4.00 / 3)

Take it from the German SPD: it's all been "crass keynesianism"...

Economics is politics by other means

by Carrie (migeru at eurotrib dot com) on Mon May 9th, 2011 at 11:36:27 AM EST
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Re: Perception... is in the eye of the bondholder (none / 1)

Do those numbers include money owed to German and UK banks by their subsidiaries operating from Ireland?

by Colman (colman at eurotrib.com) on Mon May 9th, 2011 at 09:41:19 AM EST
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Re: Perception... is in the eye of the bondholder (none / 1)

i dunno - does it make a difference?

by rootless2 on Mon May 9th, 2011 at 10:45:32 AM EST
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The End of the European Dream | 276 comments (274 topical, 2 editorial, 0 hidden)