And the award goes to

The coveted Doublefacepalm has been awarded to the EFSF.

They\’re thinking of borrowing in yuan…..

7 thoughts on “And the award goes to”

  1. The Eurozone seems to be led by a cabal of economic illiterates. Their stupidity is exceeded only by their desperation, it seems.

  2. Since when have you linked to your forbes blog?

    Tim adds: I do occasionally, just to remind that it’s there. And, of course, to get you to go over there, I get paid by the traffic you see?

    But it’s only worth sending you there occasionally as I get paid by unique monthly visitors, not page views. Otherwise of course every post would be linked…..

  3. How do we address the moral hazard of having a lender of last resort to bail out failing banks? Does its existance artifically reduce the sense of fear in the finance industry that serves as a counter-balance to the greed, and thus make bank failures more likely in the first place?

    If there is a part of the finance industry that we can’t afford to have fail, such as the ordinary day-to-day deposits, bill payments, ATM networks etc, I think we would be better to re-design that part of the industry so that it cannot fail. Eliminating fractional-reserve banking for these deposits would solve most problems.

  4. Some of these Yuan loans will go to bail out those municipalities which contracted toxic loans with Dexia, repayable in Swiss Francs.

  5. Surely this was just China trying to exact too high a price so they were never taken up on their friendly helpful offer?

  6. So Much For Subtlety

    I think that borrowing in Yuan right now is an excellent idea. It is more or less fixed to the US dollar so it is not that much different from just borrowing in Greenbacks.

    And if anything, the Chinese economy is more f**ked than Europe’s. You have a good chance it will all collapse and the yuan will be worth nothing. I notice that China seems to have fired its entire economic leadership this week. Or that’s the rumour. I’ve not seen anyone comment on it.

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