Oh dear, there\’s sense in here but nonsense as well:
The annoying thing about economics is that nearly all issues of any importance can convincingly be argued either way. It is only the long passage of time that validates one line of analysis over another, and even then, established orthodoxies get periodically overturned according to the fashion of the age.
This is very true, for very rarely are there solutions in economics, rather, there\’s a balancing of trade offs.
In reality, no one will leave any time soon. Far from the crisis undermining the euro, says Willem Buiter of the London School of Economics, the single currency has proved a bulwark against the crisis. The economic situation among peripheral members of the euro is grave, but just think how much worse it would be if the likes of Ireland, Italy and Spain had floating exchange rates.
Quite, like Iceland (as they mention) they\’d go bust. Which, arguably, is a good thing. The reason we have bankruptcy is not because we actually like it so much as because we recognise that there are times when something is completely fucked. Time to wipe the slate clean and start all over again.
Iceland has done this. Harsh, painful, yes, but is it actually worse than what Spain is going to have to go through? Years and years of grinding down the economy?
Economies are (*see comments) not companies, this is true, but both have similarities.
My bet is that having bitten the bullet and collapsed, that the Icelandic economy will recover before the Spanish and will end up better off in the long run for having done so.