![](https://i.imgur.com/CLvY2jA.png")
30-10-2024, 07:56 AM
2008 was US financial crisis
2012 Euro sovereign debt crisis.
One is 16yrs ago the other is 12 yrs ago.
If you lived through both you will know the crisis look very scary like there is never going to be a solution. Remember that night Greece negotiate with Germany people kept the whole world on its toes.
Lesson is just flood the market with money first. Deal with structural issues later. If you don't have oxygen you wont live long enough to fix your other health problems...so you make sure the economy don't stall and crash.
The Euro crisis was handled rather incompetently with verious parties with political agenda. The Germans did want to help Greece and when about Greeks having too much welfare and too big deficit. Be cause of squabbling they went back and forth for months worsening the situation. Greece had social unrest and more political turmoil.
Mistake is to use such situations to argue about long term structural issues.
In China there are many long term issue like housing being too big a part of economy, low level of consumption and so on. However the local govt debt imploded until contractors for govt projects not paid for 1 whole year civil servants not paid salary and local govt debt default looms.
They better quick fix these and do it in a big way then you buy some time to fox the longer term issues. Whether 10 trillion or 15 trillion whatever it takes just do it and without hesitation or you will face hell fast. Actually they should have done it 1yr ago but they wailait until now. Waste 1yr and cause the people investors and businesses to lose confidence.
2012 Euro sovereign debt crisis.
One is 16yrs ago the other is 12 yrs ago.
If you lived through both you will know the crisis look very scary like there is never going to be a solution. Remember that night Greece negotiate with Germany people kept the whole world on its toes.
Lesson is just flood the market with money first. Deal with structural issues later. If you don't have oxygen you wont live long enough to fix your other health problems...so you make sure the economy don't stall and crash.
The Euro crisis was handled rather incompetently with verious parties with political agenda. The Germans did want to help Greece and when about Greeks having too much welfare and too big deficit. Be cause of squabbling they went back and forth for months worsening the situation. Greece had social unrest and more political turmoil.
Mistake is to use such situations to argue about long term structural issues.
In China there are many long term issue like housing being too big a part of economy, low level of consumption and so on. However the local govt debt imploded until contractors for govt projects not paid for 1 whole year civil servants not paid salary and local govt debt default looms.
They better quick fix these and do it in a big way then you buy some time to fox the longer term issues. Whether 10 trillion or 15 trillion whatever it takes just do it and without hesitation or you will face hell fast. Actually they should have done it 1yr ago but they wailait until now. Waste 1yr and cause the people investors and businesses to lose confidence.
I, being poor, have only my dreams; I have spread my dreams under your feet; Tread softly because you tread on my dreams.
