“We should listen to the markets but not necessarily do what they say”.
One of the better lines of the crisis…
- If central banks allow politicians to use their balance sheets, pressure to reform will disappear
- Fiscal and monetary policy is being completely blurred and could erode public support for the euro
- Doesn’t think a “bazooka” bailout fund would work in Europe (referring to Paulson’s actions in the summer of 2008)
German officials have been very reluctant to ramp-up the bailout machine further for fear of undermining what little fiscal probity remains in the peripheral nations of Europe.
