Europe's Game of Political Chairs Doesn't Impress Markets - WSJ.com
Interestingly said - but, as Selzer alludes, if doesn't point out, the raft of politicians and union leaders believes there is a free lunch.
All the talk of the ECB coming to the rescue is like a family running up a limit on its credit cards. In other words, do they cut back their spending, live within their income, try to get a better job - or, as with the heavily indebted EU states (and the US), do they want the printing presses to roll out more credit?
Clearly, the objective is more credit.
After all, people have been told they are entitled. The unions haven't a clue how to start a business and socialist and union-centric governments don't want to encourage non-union, free-market businesses to compete with feather-bedded, regulatory-heavy businesses - as Selzer points out.
The US is in the same position.
The quagmire is like that of the housing market. In the US housing bubble, it was unsustainable housing price increases moving out-of-tandem with incomes.
In the world of sovereign debt, it's low interest rates moving out-of-tandem with the incentive of the private economy to save and transfer the savings to government borrowing for the socialist state.
To say the housing bubble was the first big bubble of the millenia is fairly easy; to say the sovereign debt bubble is the next - well, that would seem fairly easy too.
But, as with housing, how many really want to admit what is starring them in the face?
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