German Chancellor Angela Merkel admitted on Tuesday that the eurozone was \”facing an exceptionally serious situation\”. She brushed aside criticism that German insistence on bondholder \”haircuts\” from 2013 was fuelling the crisis. \”I will not let up on this because the primacy of politics over markets must be enforced,\” she said.
Interesting thought really.
That someone might desire that politics and politicians beats markets is not unusual. That the desires of some few should beat the desires of all, as aggregated through their actions in a marketplace, is a little more difficult to justify.
But the really important point is that while politics can influence markets, when it comes right down to it markets do have primacy over politics.
No, not because of some lack of will, not because of some lack in the political regulation of markets: simply because all of the people acting as they wish is more powerful than telling people how they should act is. If 500 million of us, the population of the EU, decide that something is so, there\’s pretty much nothing that politics or politicians can do about it.