An excellent analysis by Alan Reynolds of Ireland & Iceland's handling of their respective debt crises and breaking down Krugman's contradictory and incorrect conclusions.
A wise person once explained that good judgment can only be attained through experience, and experience often comes from bad judgment. There was a profusion of bad judgment behind the latest European debt crises. What did we learn?
One thing we should have learned is that a credible plan for deficit reduction requires action, not words. Overly indebted countries that have actually done something to restrain government spending faced much lower long-term interest rates than those that dissembled and delayed.
On the other hand, long-term interest rates can double quite suddenly if such countries reverse course and rack up so much debt that bondholders fear partial or total default. As it happens, Ireland illustrated both experiences last year, switching from good to bad judgment within a few months.http://www.investors.com/NewsAndAnalysis/Article.aspx?id=574878&p=1
Wine is sunlight, held together by water - Galileo Galilei
Un jour sans vin est comme un jour sans soleil - Louis Pasteur
Water separates the people of the world; wine unites them - anonymous
Wine is the most civilized thing in the world - Ernest Hemingway
Wine makes daily living easier, less hurried, with fewer tensions and more tolerance - Benjamin Franklin
