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Neither the U.S. Nor Europe Is Dealing With the Real Problem

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By Washingtons Blog - May 24th, 2011, 6:00AM

Economists from the Left and the Right Agree: Neither the U.S. Nor Europe Is Dealing With the Real Problem: Today, economists from both sides of the political spectrum said that no one in the U.S. or Europe are dealing with the real problems.

Niall Ferguson told Bloomberg that no one has the political will to deal with Greece, and so Europe might experience a crisis as big as the 2008 crash in the U.S.:

Paul Krugman argues that austerity has failed in Europe, but that the European Central Bank ” “i[s] just not willing to face up to the failure of its fantasies” and to restructure Greek debt. (In more Europe news, Moody’s will issue a big credit warning on 14 of the UK’s 18 biggest banks tomorrow).

And in the U.S., former Reagan head of the Office of Management and Budget – David Stockman – says that both Democrats and Republicans are now advocating for default in America, since Democrats won’t compromise on spending and Republicans won’t compromise on taxes. (Before Dems label Stockman as a radical anti-taxer, remember that he recently said that the Bush tax cuts were “the biggest fiscal mistake in history”, and that extending them won’t stimulate the economy)

Video after the jump

Niall Ferguson, a history professor at Harvard University and a Bloomberg Television contributing editor, discusses the European sovereign-debt crisis. Ferguson speaks with Erik Schatzker on Bloomberg Television’s “InsideTrack.”

May 23 (Bloomberg)

PERMALINK
Category: Bailouts, Credit, Video.

Comments

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

4 Responses to “Neither the U.S. Nor Europe Is Dealing With the Real Problem”

  1. lunartop Says:
    May 24th, 2011 at 6:32 am

    So I’ve just had to search through about twenty open tabs for a bloomberg advert blaring out at me.

    Autoplay video needs to die!

  2. keithpiccirillo Says:
    May 24th, 2011 at 6:54 am

    Children are afraid of haircuts.

  3. keithpiccirillo Says:
    May 24th, 2011 at 7:07 am

    Leaving the Eurozone?
    Similar to Nick Cage, the suicidal alcoholic in Leaving Las Vegas, except the whole world is drunk on debt, some with manageable problems, but others hopeless as they have worn out their welcomes when monetary authorities recognize their intent is not to rehabilitate but to continue gaming the system.

  4. foosion Says:
    May 24th, 2011 at 8:44 am

    no one in the U.S. or Europe are dealing with the real problems

    The real problem in the US at the moment is that the economy is too slow and unemployment is too high. We need short term stimulus and long-term fiscal solutions. Bringing healthcare costs down to the level of the next most expensive country would solve the problem. Eliminating the Bush tax cuts, the current wars and the current economic slowdown would also solve the problem. We got along rather well in the 1990s without these three things.

    Many proposed solutions would just make the problem worse. For example, Ryan’s plan would increase the deficit. What rational person cuts taxes from their present levels while claiming to care about the deficit?

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