Moral Hazard Go Hang!

There is delightfully fanciful article from the WSJ by Marcus Walker this morning titled "Closer Fiscal Union: A Collective Gurantee"  it is linked here. In it we are invited to view as a whole... "the 16-nation euro zone (is) one of the financially healthier parts of the Western world. The bloc is on course for a budget deficit of just 6.3% of gross domestic product this year, compared with 11.3% in the U.S. and 10.5% in the U.K. The euro zone's total public debts are headed for 84% of GDP this year, compared with 92% in the U.S. and 78% in the U.K."

The problem, as the article admits, is that the sixteen ex-nation currency block does not wish to be viewed as a whole, here is quoted Wolfgang Schauble..."selling the idea to skeptical European publics, whose loyalties remain largely national, will be difficult "

So in true fashion it proposes, as ever, to proceed by deceit and lies:

Some say an indirect route is more viable. 'What the region really needs is a one-off fiscal transfer,' says David Mackie, economist at J.P. Morgan in London.

A one-off transfer of 350 billion euros is then proposed ..... and that merely for Greece, Ireland and Portugal!!!

At least we now know what J.P. Morgan want from us..... their bonus pot must be running low!