HJ: The EU Debt crisis was just starting to fade from headlines, overshadowed by the equally intense LIBOR scandal. That did not mean that more carnage was not occurring everyday, as we are now seeing Spain, Italy, and even the supposedly stable Germany falling into the EU debt death spiral. Everything is getting increasingly intense and happening at a much faster rate. For the person with the true view of the bigger picture, we see that this is simply necessary destruction on the path to the creation of a better, fairer society. – Truth
By Tyler Durden on 07/22/2012 10:36 -0400
Even as Europe has become an utterly dysfunctional experiment in everything relating to modern economics and monetary theory, it has one redeeming feature: it has proven that the Defection regime under Game Theory is 100% correct. It says that once the defections from an unstable Nash equilibrium begin, there is no stopping until the entire system collapses under its own weight. This is precisely what has happened in Spain, where first Catalunya, then Valencia on Friday, and now virtually everyone else is set to demand a bailout. From Bloomberg: The Balearic Islands and Catalonia are among six Spanish regions that may ask for aid from the central government after Valencia sought a bailout, El Pais reported. Castilla-La-Mancha, Murcia, the Canary Islands and possibly Andalusia are also having difficulty funding themselves and some of these regions are studying plans to tap the recently created emergency-loan fund that Valencia said it would use yesterday, the newspaper said, without citing anyone.”
