Europe On The Brink Of Financial Catastrophe
Simon Johnson, who has made a career of studying and intervening in countries that have sovereign debt crises, has a very blunt post today, “Europe Risks Another Global Depression.” Notice the full stop; there is no passive aggressive question mark at the end to give him any wiggle room should it all blow over. Considering his expertise about identifying when countries have gone past the event horizon, that is quite worrying.
Things could get real ugly real fast, with the financial markets demanding some sort of intervention immediately.
Things are quite a mess.
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Things could get real ugly real fast, with the financial markets demanding some sort of intervention immediately.
Julian Callow from Barclays Capital said the EU may to need to invoke emergency treaty powers under Article 122 to halt the contagion, issuing an EU guarantee for Greek debt. “If not contained, this could result in a Lehman-style tsunami spreading across much of the EU.”According to Johnson, the powers that be don’t seem to understand this. Or maybe they do, but they refuse to believe the inevitable logic of the situation: the Eurozone is a failure. Critics of the Euro have long predicted that it wouldn’t be able to hold together when faced with difficulty, because it would be impossible to have monetary policy for the whole that would be beneficial to the parts. This is exactly what happened, with Germany dictating the policy to its greatest advantage, leaving countries such as Greece and Spain out to dry. This critique has now been blessed with the Common Wisdom tag, as bestowed by Paul Krugman. While Krugman bends over backwards to absolve government spending of any blame, he is absolutely correct that it isn’t the primary contributor to the problem.
Things are quite a mess.
Landrieu in a primary landslide
Posted on February 6, 2010 at 8:39 PM
Updated today at 10:55 AM
******NEW ORLEANS - For the first time since 1978, New Orleans will have a white mayor. Shortly after the polls closed, Lt. Gov. Mitch Landrieu, a two-time loser to capture City Hall, won the election in a run-away, burying the field early and grabbing a large percentage of votes across all racial lines.
Greg Rigamer, WWL-TV elections analyst, projected Landrieu the winner 35 minutes after the polls closed.
It was Landrieu’s father, Maurice “Moon” Landrieu, who was New Orleans last white mayor.
“Everything that I am looking at tells me that Landrieu will be the next mayor,” said Rigamer at 8:35 p.m.
Winning votes heavily across all segments of the city, analysts were able to call the race so early as Landrieu ran way in front among almost all demographics: Republicans, Democrats, women, men, white voters and black voters.
Rigamer projected that Landrieu would draw 62 percent of black voters and 69 percent of white voters.
“The people of New Orleans did a very extraordinary thing today,” he said from inside the Roosevelt Hotel, reflecting on his ability to reach voters from all backgrounds and races. “We decided that we were going to stick the poll in the ground and strike a blow for unity, strike a blow for a city that decided to be unified rather than divided.”
Landrieu's victory was “a combination of buyer’s remorse from four years ago (when he lost in a runoff to Mayor Ray Nagin) and feeling, a pendulum effect -- he is the most unlike Ray Nagin,” said Clancy DuBos, WWL-TV political analyst, alluding to Nagin's abysmal approval rating, which is around 20 percent.
“He ran an exceptional race and people could see the sincerity,” said his sister Sen. Mary Landrieu.
When asked about what the election of her brother said about race relations in the city, she said, “That we are well on our way. This is just the way we do it here.”
The quick call rippled through the campaign headquarters of several candidates as one, John Georges, gave his concession speech less than an hour after the polls closed.
“This has never been about me, it was never about Mitch or Rob or James or Troy or Nadine. It’s been about the people of New Orleans and how bad we need leadership and we change in our city. It’s about the crime problem that needs to be addressed. It’s been about the potholes and the hospitals that need to be opened and I’ve been assured, Mayor-elect Landrieu said he’s going to get to work right away on those problems.”
A sign of modernity in the race, candidate Rob Couhig conceded the race via Twitter shortly after 9 p.m. "I'm disappointed but very grateful for all of my supporters. I wish the best to Mitch and the city of New Orleans."
The race to replace outgoing Mayor C. Ray Nagin, who is term-limited, had little fireworks, nearly no drama until the night before qualifying when Landrieu was a surprising late entry in the race, after saying earlier that he would not run for mayor.
His entry shook up the slumbering race and had an almost immediate impact as Leslie Jacobs dropped out of the race shortly thereafter and state Sen. Ed Murray, considered an African American front-runner, also dropped out of the race, after seeing polling data that had Landrieu running far in front of the field.
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