Tuesday, February 26, 2013

It's Just About Time To Dust Off Those Eurocrisis Posts

... because the Italians have decided that, while they like eating out, they don't like paying the bill.

Yesterday, the Italians voted against mathematics. Instead, they voted for chaos.
Several candidates opposed to austerity measures were making a strong showing Monday in partial results from Italy's local elections -- the first nationwide test for Premier Mario Monti since he was named to save Italy from its debt crisis.

Analysts were watching for signs of voter anger in two days of balloting over Monti's austerity measures and toward mainstream parties that have supported them since Monti took over from Silvio Berlusconi in November.
Note that the article says they voted against austerity, but that's not really true. Austerity will come no matter what since it's a consequence of borrowing mountains of money. How's the whole voting against math thing going to work out? I think the best answer is this.


W.C. Varones said...

I welcome this result.

The banks that lent to Greece, Italy, and Spain were stupid and deserve to lose their money.

They will lose their money, either through default or devaluation.

Same with US bondholders.

Bunga bunga!

K T Cat said...

I think money will be printed and handed out to all. No one will lose much of anything excepting the losses through inflation.

W.C. Varones said...

Indeed. But that's the same thing to a bondholder: 50% haircut in a default, or 100% payback in a devalued currency worth 50%.

It's the slow puncture.