No. of Recommendations: 7
I took some pain medication and am struggling to get this out, so I will hold the commentary except to say the author makes a pretty good Kensean case.

http://www.theatlantic.com/business/archive/2013/03/why-the-...



Here's the Cliff Notes version of the euro crisis. The euro zone doesn't have the fiscal or banking unions it needs to make monetary union work, and it's not close to changing that. In the meantime, the euro's continuing flaws continue to suck countries into crisis. And their politics get radicalized. Most recently, Cyprus was forced to accept a bailout and bail-in, because its too-big-to-save banks made some horrendously bad bets on Greek bonds. Slovenia looks like it could next on the euro-bailout tour, because, as Dylan Matthews of the Washington Post points out, its too-big-to-save-ish banks made some horrendously bad bets on its own companies. Now, banks make bad bets all the time, but those bad bets can bankrupt you as a country if you don't have your own central bank. Like euro countries.

Of course, this "diabolic loop" between weak banks and weak sovereigns isn't the only problem in euroland. The common currency has plenty of other flaws. Here's why the euro, as it's currently constructed, is a doomsday device for mass bankruptcy. (How's that for solidarity?).


Cheers
Qazulight
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