About 4 months ago, I wrote the following to you about the political economy of the European sovereign debt crisis:
If I had to simplify the sovereign debt crisis to one sentence I would say this: As some euro zone sovereign debtors are near insolvency, a liquidity crisis has begun in which various ‘creditors’, the various national taxpayers and bondholders, must fight to determine how to apportion the losses.
Well folks, we live in a creditor-friendly world; and when I say creditor, this time I’m not talking about taxpayers.
The taxpayers are always going to be the ones taking the hit – unless the credit system collapses under its own weight. That’s what Omid Malekan seems to think too. His video below explains the European crisis. Take a look.
P.S. – It’s funny – in a dark way!
Some of these are in the related posts below, but you should definitely also see:
- Video: The Euro Bailout Explained, Oct 2011
- Video: Inflation Explained, Apr 2011
- Video: Bank Bailouts Explained, Feb 2011
- Video: Quantitative Easing Explained: The Remix, Dec 2010
- Video: Quantitative Easing Explained, Nov 2010
The first one is from the Guardian and the others are from Omid. He talks about his views here in More on Quantitative Easing Explained from last November.
Enjoy.