Here is Nouriel Roubini from Project Syndicate: says bloody euro need an austerity measures and structural surgery:
So, now what?
Symmetrical reflation is the best option for restoring growth and competitiveness on the eurozone's periphery while undertaking necessary austerity measures and structural reforms. This implies significant easing of monetary policy by the European Central Bank; provision of unlimited lender-of-last-resort support to illiquid but potentially solvent economies; a sharp depreciation of the euro, which would turn current-account deficits into surpluses; and fiscal stimulus in the core if the periphery is forced into austerity.
and the ECB oppose this option, owing to the prospect of a temporary dose of modestly higher inflation in the core relative to the periphery. Germany
The bitter medicine that
and the ECB want to impose on the periphery – the second option – is recessionary deflation: fiscal austerity, structural reforms to boost productivity growth and reduce unit labor costs, and real depreciation via price adjustment, as opposed to nominal exchange-rate adjustment. Germany
That can be a risky business but there is no other option as you have to do it. You have to go through painful steps and getting things right. It is called “all suffer togetherness”.
Wow from Al Jazeera;
Don’t say too big to fail too big to bail out, that is lonely language only!