Sunday, May 23, 2010

The market knows best

William Keegan writing in the Guardian/Observer: "Although there is no getting away from the fact that Greece woefully mishandled its financial affairs, the financial markets seem to have put many eurozone countries in a classic Catch-22 position: they 'short' whole countries whose fiscal position is considered unsound. And then when the fiscal masochism they advocate is put into practice (or promised) they 'short' them again, because of the inevitable effect this will have on prospects for economic growth."