Krugman on European Financial Suicide

[Kai Frederik Lorentzen]

That's exactly the position of me and my wife.

Thank you for all the explanations in this thread!


On 17.04.2012 00:17, alice wellintown wrote:

> 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.
>
>