Tuesday, June 12, 2012

The Worst Possible Thing They Could Do Is Borrow More Money Because Austerity

We went through this yesterday, but it's a stark reminder of where we are.

The deal, though, fails to address a fundamental issue that has been spooking markets: This is the worst possible time for Spain to borrow 100 billion euros. Under the agreement, any amount used to bail out Spain’s banks will be added to the country’s government debt, potentially pushing it to a net 70 percent of gross domestic product, from about 60 percent today.

According to Our Galtian Overlords, austerity is necessary. Except, of course, when it comes to massive failing companies known as banks. Just keep lighting billions of taxpayer money on fire, paying massive salaries to the people who are destroying the world. And nobody mention moral hazard, because that's what happens when you give someone an extra $10/week in food stamps.

There are lots of reasons the banks are having problems, but one reason is that people have no jobs and no money. And the Galtian Overlords are determined to keep people broke and unemployed, while extracting everything possible from the economy to give to the banks.

There's stupid, but also a whole lot of evil. Bad people run the world.