The Euro crisis

[fpb]

For the first time, I am worried about how this crisis might end. I do not know enough finance to have a clear idea of the forces involved; but I do have a view of the psychological forces. It has always been my view that the Eurozone countries would never just let the Euro go without a fight. On the other hand, it also is my long-held view that you understand nothing about the so-called "markets" unless you apply mob psychology to them. They are not rational, indeed they are essentially mindless. And the Eurozone leaders have essentially just challenged a mob of twentysomething macho men to do their worst. The reasons why "the markets" will now go berserk is that this is as good as looking at them in the eyes and saying: "Come on, if you think you're hard enough". From now on, this is not about the real strength of the Irish and Portuguese economy, but about who is the hardest.

Comments

[affablestranger.livejournal.com]

Yeah. Pretty fair assessment.

[apaximander.livejournal.com]

It's also about rampant nationalism, something that approaches being a force of nature here in Ireland. Is Ireland doing well? Then the EU kicks seven kinds of ass and we're all awesome. Is Ireland crashing and burning (again)? Then the EU was a horrible idea and the government should fix the debt crisis with no outside assistance whatsoever...somehow.

[apaximander.livejournal.com]

(Oops, hit 'post' by accident)

It's also funny to see people turn so viciously on the government, apparently having forgotten that we had an ideal chance to kick them out of power during the last election. They got voted back in largely because people didn't want to 'rock the boat', despite the fact that this was taking place when the first major downturn was getting too close to ignore and the government's general incompetence was already considered settled fact.