Chancellor Angela Merkel of Germany on Sunday re-emphasized her opposition to issuing bonds ... adding that “politicians can't and won't simply run after the markets.”MERKEL IS TAKING THE RIGHT POSITION.
Mrs. Merkel told ZDF television in an interview broadcast Sunday that the so-called euro bonds would be an option only in the distant future.
“It will not be possible to solve the current crisis with euro bonds,” she said. She added that “politicians can’t and won’t simply run after the markets.”
“The markets want to force us to do certain things,” she added. “That we won’t do. Politicians have to make sure that we’re unassailable, that we can make policy for the people.”
The German finance minister, Wolfgang Schäuble, echoed Mrs. Merkel’s comments, saying that common debt would make it easier for governments to avoid pursuing responsible fiscal policies. In any case, he told the newspaper Welt am Sonntag, it would take too long for countries in the euro zone to amend the treaty on monetary union, which would probably be required to allow the issuance of such bonds.
THE MORE SOCIALISTIC AND LESS PRODUCTIVE NATIONS OF EUROPE SHOULD NOT BE ABLE TO FORCE THE FRUGAL AND PRODUCTIVE GERMAN PEOPLE PAY FOR THEIR RIDICULOUSLY GENEROUS WELFARE STATES.
EUROBONDS WOULD DO THIS.
NEVER THE LESS, THIS CORRECT POSITION WILL LED TO ANOTHER ROUND OF DEEP CORRECTIONS FOR GLOBAL STOCK MARKETS.
RIGHT NOW, ASIA IS UP A LITTLE.
I EXPECT THEY WILL CLOSE DOWN.
UPDATE: GOOD MORNING. IT SEEMS GADDAFY IS FALLING AND THIS GOOD NEWS IS BUOYING THE MARKETS - TEMPORARILY. ASIA STARTED OUT WELL UP AND ENDED THE DAY MOSTLY DOWN - BUT NOT BY MUCH.