Krugman on European Financial Suicide

[alice wellintown]

Sure, inflate. But the economist doesn't deal with the stake holders.
Who will be helped by inflation and who will be hurt by it? WE've the
same case here in the US. Inflate and housing prices will go up, those
who owe will be bailed out by inflated cheap money payments. This is
the bail out Morris was asking for, the bail out of the 99% who got in
over their heads and now want a bail out. Afterall, the banks got
bailed and so did the auto companies and so on. So why not inflate and
bail out the home owners? Why not inflate and save the Euro and Spain
and so on? Why not? Because it's not a win win. It's a win lose. The
debters win and the lenders lose. Why should the lenders lose? Why
should those who have saved and invested and lived within their means
not beyond them, lose out? Inflate the price of my bonds, bonds with
big coupons and call protection, will fall like rocks. Why should the
value of my securities drop so that those who owe me the money can get
out of trouble? No thanks. I'm German on this one.