1. Why is Greece turning down the “bailout” (Tyler Cowen)
2. Circular commitments lead to a Ponzi economy (Letter to the FT). Here's the key quote:
4. Mr. Hoenig Goes to Washington (Simon Johnson)
5. Bond Dealers See Fed Holding Rate Near 0% at Least Through First Half of 2013 (WSJ)
6. Papandreou Is Right to Let the Greeks Decide (Spiegel)
7. Live European debt crisis coverage (BBC) and (Telegraph)
2. Circular commitments lead to a Ponzi economy (Letter to the FT). Here's the key quote:
If governments stand behind banks and banks stand behind governments and the central bank lends freely to both and also underwrites financial markets, then financial asset prices become completely detached from economic reality. In this “system”, the central bank implementing more quantitative easing is no different, in economic terms, from Bernie Madoff marking up his client accounts every month.3. The Bailout That Busted China's Banks (WSJ)
4. Mr. Hoenig Goes to Washington (Simon Johnson)
5. Bond Dealers See Fed Holding Rate Near 0% at Least Through First Half of 2013 (WSJ)
6. Papandreou Is Right to Let the Greeks Decide (Spiegel)
7. Live European debt crisis coverage (BBC) and (Telegraph)
