Junkie´s economy

Much has been talk of the causes of the crisis being the ease of lending by financial institutions one of the reasons adduced to explain more.

However true, so is that nobody forced to sign a mortgage. We have experienced a time when society in general has acted as a junkie and the financial system as a drug dealer. Going the distance, I think the picture is appropriate because the loss of purchasing power has been offset by increased access to credit which has allowed high rates of consumption. This consumption obviously has fallen when the pusher has stopped supplying the drug, in this case the easy money and cheap.

In the underworld of drugs, the addict ends badly or in a detoxification clinic to remove the dependency, the pusher ends, at least in the movies, bad or in jail.

Perhaps this is where the script away in real life, in our case the narco gets away with millions of euros in compensation and a new job waiting just around the corner.

Quid prodest Bankia?

One of the main reasons that have brought this debacle in financial markets, as well as Greek and French elections, has been the involvement of Bankia.

This has been facilitated by Deloitte's refusal to sign bills. Asserts a wealth gap due to the valuation of accounts Bankia in BFA.

The paradox is that the same auditing firm validated the same accounts for just six months and also a little earlier because of the bank's IPO.

Although it is true that the price has since fallen and Bankia traded well below book value, as other banking stocks, does not seem a sufficient reason for varying the auditor's opinion to the point of refusing to sign the audited accounts.

Is responsible for the auditor to have signed a few bills on time last year were virtually equal to those who have refused to sign? What motivated this change of opinion? Is there a conflict of interest, since it also was responsible for auditing the accounts of members of the merger saving banks? Nobody will say anything, not even the CNMV also validated the IPO? Does repeated Enron?, Do not forget that the current Deloitte emerges from the ashes of Arthur Andersen and the Ibex that Deloitte audits from the current portfolio of clients from the old defunct auditing firm and disappeared but auditors reappeared on the other hand.

Rato is now known that he wanted to change the auditors, can revenge?. Costs the country dearly.

Rosebud

Rosebud are the last words of Charles Foster Kane, Welles transcript created by narrating the life of William Randolph Hearst, american billionaire who came to have 28 headers of newspapers and that, among other things, used for political ends. A front page dictated the media and was responsible, for example, the end of the Spanish empire in 1898 to support and promote the war in Cuba and being, therefore, responsible for the loss of the last Spanish colonies overseas.

The need to sell newspapers is seen in current publications as Newsweek, featuring Obama as the first gay president of the U.S. to defend gay marriage. Obviously one thing to defend and another very different practice.

In our country we also have our dose of sensationalism, but is unknown for the time recipient of some news. So we have one of the most important national newspapers giving news to the first rank of a blog post by Paul Krugman. Krugman uses this blog for many things, obviously is a blog and not The Economist or other specialized published by a prestigious university. Lectures are colloquial and do not have, of course, the same depth of analysis research papers produced after months of study.

Well, they use a blog entry, even that of Krugman, who used to teach doctrine so as to mock his enemies (which aren´t few), to whip do not know who. The news that Krugman see that is possible in a few weeks out of Greece to the euro and a "corralito" in Spain and Italy is not only biased and irresponsible, but is practically constitute a crime against the country.

How far do you get in this spiral of the worse better?

More wood, this is war¡¡

It not seems that the storm will abate in the coming days, quite the opposite.

The various factors that have converged in this May are too important to fade down the road without being lost some more feathers.

It is these moments when you most envy the Americans: polls every four years, a monetary policy that conforms to what the economy needs, not an economy that is set by definition, clarity of ideas, leadership, etc..

In contrast here in Europe continue to insist on the same recipes check despite not working, too much ego at stake and too Calvinist morality, too many elections and too many interests and the rating guys of "Insist and insist in the same way."

The only alternative is a federal Europe, but there is currently no politician with sufficient size to lead the necessary step forward.

How long we wait to decide who should decide? That clean up and clean out, everything else is quite simply a waste of time and money. If he had already done a couple of years, the only difference is that the bad times and we had taken us.