Saturday, May 29, 2010

The Euro

This is an observation regarding the Euro. The situation of the Euro can be explained like the metaphor of a house. At first the house gets built, relatives (in the case of the Euro, countries) move in and there is a sense of excitement, everyone is happy. Next thing that happens is some uncles get drunk, rack of huge debts and start to ask the healthier relatives for some money (in the case of the Euro, more stimulus, debt).

So something has to happen: the uncles get better; or the healthier relatives continue to bail out the uncles; or chaos ensues (like a war); or the whole house gets sold and everyone disbands peacefully with some bad feelings.