Friday, March 2, 2012

And what if we don't listen to you?

Spain recently announced that they're not even going to try to meet the EU's required 4.4% deficit, instead they think 5.8% should be good enough. Over the last decade there has been no punishment for the Greeks, Portuguese and others who have blatantly disregarded the EU's rules about debt and deficits - so why should this time be any different? In fact the worse they act the more free German money they get. What could go wrong? And this is exactly why I think the EU bailouts are doomed to failure. If EU doesn't make an example out of someone, no one is actually going to follow the rules.

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