You stupid, stupid boy.

The French president admitted that European infighting had led to markets and consumers being \”paralysed by fear\” and vowed to stop the bitter argumentswith Germany to ensure the euro is properly supported. \”It must be made clear that a debt of a euro member will be repaid,\” he said. \”It\’s a question of confidence.\”

We all know that at least one, possibly three, eurozone countries simply cannot repay their debts. Just isnopt mathematically possible, however much the borrow now and from whomever. To insist that, for example, Greece, will repay all its debt is to be counter-productive, or, in the technical terms the market uses, pissing up a rope.

It simply cannot happen so an insistence that it will is just going to make things worse: markets really don\’t like people who refuse to face up to reality.

4 comments on “You stupid, stupid boy.

  1. We-e-ll, he didn’t say who would repay the debts, did he? If Euro bonds were issued to replace national bonds in the Eurozone area, the debts would effectively be paid by the solvent countries, especially Germany. I hope Merkel realises he’s just thrown her to the sharks.

  2. Frances Coppola has it right – this is Sarko still trying to save those French banks and his precious AAA rating.

    Quite delusional of course

  3. Nah, this is just Sarko doing what Sarko does: politicking. He’s a Machiavellian genius but on economics (or governing in general) he doesn’t have a clue.
    Still, nice bear trap laid for Merkel and Hollande to walk into.

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