Merkel: Euro Bonds "Absolutely Wrong" For Crisis | Anorak

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Merkel: Euro Bonds “Absolutely Wrong” For Crisis

EUROBONDS are “absolutely wrong” for the crisis. So saith Angela Merkel:

German Chancellor Angela Merkel bluntly rejected euro zone bonds as a solution to the currency area’s sovereign debt crisis, saying on Thursday that “collectivizing debts” would not solve the problem.

This doesn’t really leave any palatable options for resolving the crisis. I’m not even sure that it leaves any unpalatable options for resolving it.

Put aside all the bits and pieces you’ve read over the past year or so and just think about these few things.

1) Greece is bust. Portugal, Spain and possibly Italy could follow them. Ireland’s a special case as it might, just, be able to climb out of its hole. Well, we know what we do with bust companies, we declare them bankrupt and wipe out their debts. We can do this with countries, indeed we’ve done it hundreds of times over the centuries.

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Posted: 15th, September 2011 | In: Money | Comments (5)