Ben Bernanke’s Steel-Toed Ballet Slippers
November 30th, 2011 - 8:39 am
Jim Pethokoukis sums up today’s Fed action on the eurozone:
Euro zone governments now have a bit more time to figure out how to save the euro zone. Markets are happy because it seems the ball is moving forward. But without deep structural reforms in at-risk economies, the ECB probably won’t act. As Paul Ashworth, U.S. economist at Capital Economics, puts it, “This is a very helpful move. The markets clearly love it and liquidity is half the battle. But there is still a broader question to be resolved about solvency. If Italy defaults on its debt tomorrow, it wouldn’t matter how much liquidity you had.”
The can-kicking has become almost ballet-like in its sophistication. But it’s still can-kicking.
We certainly are getting kicked in our cans with all of this.
You mean that the FT’s “10 days ’till the world ends!” panicking yesterday was merely an excuse and cover for B-52 to open the bay doors again? Color me shocked, in a Col. Renault sense.
The problem is that the road they keep trying to kick the can down is actually just painted on a wall. They kick the can and it bounces back off the wall and hits them in the face. So they kick it again, over and over and over again. Lack of depth perception I suspect.