tag:blogger.com,1999:blog-36227136.post8786219154631993451..comments2024-01-16T08:40:53.682+00:00Comments on <a href="http://www.openeurope.org.uk">Open Europe</a>: The ECB loads up on PIIGS exposureOEhttp://www.blogger.com/profile/00556463374230498875noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-36227136.post-65775422172161944412012-06-13T21:32:17.832+01:002012-06-13T21:32:17.832+01:00Could you show how you derived the exposures for t...Could you show how you derived the exposures for the individual countries?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-36227136.post-30007440894923707642012-04-21T11:15:55.414+01:002012-04-21T11:15:55.414+01:00Costs will simply run up the longer it takes.
Sout...Costs will simply run up the longer it takes.<br />Southern PIIGS simply need to lower their standards of living to a sustainable (aka not financed by others) level. This probably requires 20-30% adjustments (and more for soem).<br /><br />If these adjustments are made in steps of 1-2% annually it takes a long time. If this proces is financed by more loans as we see now overall debt will rise further.<br /><br />Furthermore as private investors are running away from it. Not only there is an increase of the total amount but also from private to public (aka as the tax-payer).<br /><br />The problem of course is that cutting half of their welfarestate is necessasy as well as 10s % cutting in the numbers of civil servants. Which can apparently not be sold to voters. So now it is effectively sold to the Northern neighbours and their voters.<br /><br />Unless there will really be real structural measures or the North stops paying for the deferring this process will simply go on.<br /><br />In this respect it is simply throwing good money after bad giving the IMF more resources. At the end of the day it simply allows the Southern PIIGS to go slower with measures that have to happen at the end anyway.Riknoreply@blogger.comtag:blogger.com,1999:blog-36227136.post-72673949699501285152012-04-20T19:46:48.068+01:002012-04-20T19:46:48.068+01:00"The eurozone needs to accept that there are ..."The eurozone needs to accept that there are a few structural flaws underpinning the eurozone crisis ... ".<br /><br />Such as, that most of its member countries shouldn't really be in it.Denis Coopernoreply@blogger.com