Dutch, Austrian and Finnish bonds start to sell off.

[Gustaf]

Mr. Geithner, choosing his words carefully, suggested the European Central Bank should be doing more. "There are lots of ways for the central bank to play a more effective supportive role…It's not rocket science."

Duh.  They can type 10,000,000,000,000 into the computer just as easily as I can.

I thought computers confused you?


Beet,
I think people are simply running for cover now. Things are beginning to look pretty damn bad.

[Gustaf]

One problem with monetizing the debt is the long-term impact. If that is the solution you're basically telling bond markets that lending to eurozone governments sucks.

Beyond that I'd point out that the 30s gave us Hitler and WWII. I don't want to be a paranoid alarmist, but seriously. We don't want to have those levels of economic distress again. We have enough fascism on the rise as it is.

[Gustaf]

One problem with monetizing the debt is the long-term impact. If that is the solution you're basically telling bond markets that lending to eurozone governments sucks.

Beyond that I'd point out that the 30s gave us Hitler and WWII. I don't want to be a paranoid alarmist, but seriously. We don't want to have those levels of economic distress again. We have enough fascism on the rise as it is.

Well sorry to be a bearer of bad news, but the social fabric of much of the EU is about to be put to the test. And radical beliefs will become more common as people look for people to blame. Now whether that is the wealthy, immigrants, capitalism, governments, people from a different part of the Eurozone, etc. things could get ugly.

Yep, I know. And it worries me.

That's why I still think letting the euro go is the best option for the long run.