Wednesday, May 30, 2012

Infinite Resources

There are better and worse ways of fixing the problems, but Yurp is only resource constrained because they have constrained themselves.

A European bailout of Spain, the euro zone’s fourth-largest economy, after Germany, France and Italy, is becoming a more distinct possibility. With each passing day, turmoil mounts over the government takeover of the giant Spanish mortgage lender Bankia, the flight of money to safer borders and a worsening recession.

A rescue, if it came, would strain the resources of Europe’s new €700 billion, or $867 billion, bailout fund that is to become available this summer. And it would leave little margin for any additional bailouts.

Print free money, give it to the banks. Problem solved, move on.

Now I'd prefer the "giving free money to people" solution, but really the only reason this is hard is because they're choosing to make it hard. Precisely why that is I do not know, but that's the state of affairs. The resource is money. They can make as much as that as they want.