Friday, June 17, 2011

Euro-Trash

The engine of the Euro-spaceliner sputtered dangerously, and the passengers shrieked in fear.  Finally, at 100 miles (160 km) up, Captain Merkle and First Officer Sarcozy cut the engtines.

"Not to worry," said the Captain, whose knowledge of physics allowed her to do this sort of calculation in her head, "This thing won't crash into the earth for at least twenty minutes."

The passengers cheered and ordered more drinks.

Much of the world's financial trepidation today is inspired by those Euro denominated bonds from countries that look like they are going to have a heck of a time paying up, especially Greece, but also Ireland, Portugal and Spain.  All of the above are in deep recession and have a lot of borrowed money, and the fear of the bondholders is that their Euro-cash may just be Euro-trash.

Another bailout has been agreed by all the principals - except of course the Greek people - but the crash has simply been put off, since there is little prospect that Greece will be able to pay.