Reading List: The opposite of stupid

29th September 2011

The opposite of stupid

The Free Exchange Blog of The Economist criticizes the German finance minister Wolfgang Schauble's belief that boosting the spending power of the EFSF is "stupid."  It argues that the euro zone will likely "come apart" without the ECB or EFSF increasing its capacity to purchase sovereign debt.

 

Estimating the Cost of the Eurozone Crisis

Kash Manson of The Street Light measures the cost of a euro zone crisis in both periphery and core countries in the euro zone. He says because all member countries benefited from the euro "the cost of the crisis should be shared."

 

Obama's Euro-Crisis Lecture Is 'Pitiful and Sad'

At a recent event in California U.S. President Barack Obama described Europe's inaction on the debt crisis as "scaring the world". However, Spiegel reports that many Europeans are not pleased by the lecture given by the President given the problems the U.S. is facing itself.

 

Killing the Recovery

The New York Times warns that spending cuts and austerity measures in the U.S. and Europe respectively, could kill the current recovery and cause the world economy go into recession once more. It adds that China is making matters worse by not appreciating its currency and trying to balloon its trade surplus.

 

What Causes Bubbles?

‎Most would agree that bubbles usually occur when an item's price far exceed its real value. However, there is no real universal explanation on how bubbles form.  In the San Francisco Chronicle Amy Fontinelle takes a look at a number of different economic prospective on the issue.

 

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