03 September 2011

Ai Portugal, Portugal

The Spanish and Italian interest rate spreads — the difference between their borrowing costs and Germany’s — are widening again. So we’re drifting back toward the point at which these countries might enter vicious circles of falling confidence and rising debt burdens.
My guess is that this reflects both doubts about whether the ECB will backstop these economies in the face of growing opposition, especially in Germany, and the bad economic news for Europe generally, since paying debts will become much harder in the face of a recession. 
To make austerity in some European countries workable, you really needed stronger European economies not to be practicing austerity; 
austerity for all was and is a recipe for failure.
Paul Krugman
À Governança de Portugal;
Pois daqui vai o meu espanto,
não sabia haver tanto neo-liberal
E nunca se esqueçam que são os vossos erros
que a populaça tem de pagar
Lightly, lightly, very lightly,
A wind passes very lightly
And goes away, always very lightly.
And I don’t know what I think
And I don’t want to know.

Fernando Pessoa 

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nowhere but there