Thursday, January 13, 2011


Paul Krugman

I’m with Calculated Risk here: it says something about the sheer desperation of the European situation that Portugal’s ability to sell 10-year bonds at an interest rate of “only” 6.7 percent is considered a success. If you think about the debt dynamics here — the burden of growing interest payments on an economy that is likely to face years of grinding debt deflation — an interest rate that high is little short of ruinous. But it is, indeed, not as bad as people were expecting last week; hence, success.

A few more successes and the European periphery will be destroyed.

O amigo Paul bem poderia ter começado o seu artigo desta forma: "I´m with Aliás here"...
Compadrios, é o que é.

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