EURO FOLLIES

The great thing about the New York Times is whenever you need a laugh, just read it. The other day they ran an op ed piece written by a sociology professor at the University of Notre Dame entitled, "Portugal's Unnessary Bailout." In academia, if a professor of one discpline were to criticise the scholarship of a colleague in another discpline he would be academically tarred and feathered but outside of the hallowed halls anything goes. Dispite displaying a woeful lack of knowledge of sovereign financing and capital markets, the good professor concludes that all that was needed was for the EU simply to aggressively buy Portugese bonds (thereby displaying another woeful lack of knowledge of the EU's rules and regs) and all would have been fine. There are dark forces out there suggests Prof. Fishman. Credit rating agencies for one. The IMF for another (actually, I agree with him there), and anti-Kenesians to be sure. Memo to sociology majors under the Dome: unless he teaches a gut course, I'd avoid his classes. Anyone that prepared to make himself look silly in public has sociolgical problems.

However true to form, the editorial boys and girls at the Gray Lady followed up today with, "An Undemocratic Bailout," suggesting that the Euro forcing Portugal to accept a bailout package befor the formation of a new government would end democracy on the Peninsular as we know it. How's about a bridge loan until a new government is formed, they suggest? A bridge to where you might ask? Not discussed. Now of course the Times and Prof. Fishman couldn't give a toss about Portugal--well he might, he has a new book coming out--but what they do care about is the now-joined battle in this country concerning our own little Portugese debt profile. Remember those dark forces? Allow them to win in Portugal and they just might gain the upper hand here. If it wasn't so patheticaly obvious, the juxtaposition's intent would be truly funny. As such it just gets a giggle. Oh, by the way children, Greece's 2 year yielded 18% today.

Of course by playing silly bugger with each other, the Euros allow this sort of nonsense to go on.
It's your banks, it's always is going to be your banks. Own up to it, cover their bums, force out the present management and move on. There's so many women involved in European politics and finance one would think there would be a Lady Macbeth among them. Be bloody, bold and resolute. Otherwise you are going to face the babbling we have to put up with here in the pages of the New York Times.

See you next week