...IF YOU CAN'T, TEACHhh

Went over to the U yesterday for a small symposium on Euroland and the state in which it finds itself.  Clueless, except for one participant from the business school who started his career at the Fed.   Long blabbering on the Little Paulie Krugman theory of debt and economic crises: throw as much money as possible at them and all will be well.  Greece and Portugal never would have gotten into trouble if this had been done.  Caused a bit of a ruckus when I suggested that for the purposes for which we were all in attendance Greece and Portugal really didn't count as serious countries, so let's stop talking about their situations.  Didn't realize that one of the panelists considered himself an expert on Portugal and,"...had written many scholarly papers on the subject."  I'm afraid I did:   "As opposed to unscholarly papers?"  Really shouldn't do that with academics; they become incensed.

It is a very interesting exercise, visiting and being exposed to the workings of academia.  The validation of a thesis is the most important thing.  Reality is somewhat secondary.  And therefore, if you wish to prove Keynesian theory correct simply posit the improvements that have occurred since the promise of "at any cost" theory of central banking promulgated by Sr. Draghi a month or so ago.  Such as, "the conclusion of the banking crisis," which of course hasn't concluded at all the fact of which is of no consequence because the claim that it has proves the theory.  For the paltry sum of about 50 large a year, drivel like this is poured in the heads of unsuspecting children and woe be unto he who dares question the ravings of the great professor.   I now have a far better understanding why the same mistakes are made every twenty years or so.  Future generations are not apprised of history; they are taught personally perfected drivel.  They never stand a chance.

Having said all that, the Spanish pulled off a pretty good auction today with an over bid 10 year going off at 5.666%.  Nice improvement due entirely to the Draghi "put."  A fundamental improvement?  You be the judge.  With new estimates of 80 billion Euros in new capital needed to fix the banking system I have my own thoughts on the matter but I am absolutely certain that 80 billion is insufficient in any case.  Meanwhile, the Greeks and the Troika simply can't find common ground and the Greek finance minister is off to consult with his counterparts from Spain, Portugal and Italy.  Can it be long before we hear talk of a "borrower's club?" Probably not.  Of course it make not a lot of sense to have officials in Germany heard muttering that another Greek "haircut" may well be needed.  Once again I ask, "Can't anyone here play this game?"

Finally, job numbers and purchasing numbers released today were not encouraging.  I still don't like what I see.