Economists from the Left and the Right Agree: Neither the U.S. Nor Europe Is Dealing With the Real Problem
Today, economists from both sides of the political spectrum said that
no one in the U.S. or Europe are dealing with the real problems.
Ferguson told Bloomberg that no one has the political will to deal with
Greece, and so Europe might experience a crisis as big as the 2008
crash in the U.S.:
Paul Krugman argues
that austerity has failed in Europe, but that the European Central Bank
" "i[s] just not willing to face up to the failure of its fantasies"
and to restructure Greek debt.
(In more Europe news, Moody's will issue a big credit warning on 14 of the UK's 18 biggest banks tomorrow).
And in the U.S., former Reagan head of the Office of Management and Budget - David Stockman - says that both Democrats and Republicans are now advocating for default
in America, since Democrats won't compromise on spending and
Republicans won't compromise on taxes. (Before Dems label Stockman as a
radical anti-taxer, remember that he recently said that the Bush tax cuts were "the biggest fiscal mistake in history", and that extending them won't stimulate the economy)