Style question

If we do a bit of memory and try to be minimally fair, remember that the last time got the PP in front of the Government of Spain, namely in 1996, the economic situation was radically different, this, far from buoyant was redirected through adjustment policies undertaken by the head of the Economy, Pedro Solbes.

The erosion of economic ajustment and the political (GAL affaire) for the last government Gonzalez, led the government relief. The PP was found with an economy still in recession but with the duties performed, so a tweak of the wheel, managed to capitalize on their own and others achievements.

The current situation can not be compared, obviously, the previous time the international economic situation which was supported and pushed the Spanish recovery, following competitive devaluations and improvement, the Spanish economy enjoyed the international climate to improve all indicators: growth, personal income, unemployment, etc. At the team responsible for then, Rato is assigned much of the success achieved but without offence, must be attributed a large share of that success to the international environment.

This time, the transfer of power has not been done in the same way, the crisis is not only national but rather international, Solbes, however much he tried, did not have a President of Government, at least at the beginning of problem, willing to sacrifice for the country, may not even really come to understand the proof of the problem.The PP has come, therefore, the government in an entirely different (though majority) since all the dirty work is done.

It is not worth the "laissez faire" to the ship back on track, we must roll up our sleeves. The current team in charge of economic affairs seems, however, have succumbed to the dilettante atmosphere of the Prime Minister, famous for his handling of "tempo": wait and see.

Be undertaken important structural reforms draft, have an absolute majority, years away for the next election. Citizens, no matter political color, if you explain things properly, understand them. All that is asked is that they act so that this agony is as short as possible.

What is not acceptable is to see the explanations after Guindos triumphalist European rebuke or see Montoro explain why rising VAT beacuse "there are much fraud." It is outrageous.

We are fed up that we always are compared with bullfighters and "old fashioned gentlemen", the Spanish are no longer so, only some of its politicians more dandruff.

The Ides of March

I am a little concerned, although it seems that no matter how bad the news that appears, and that the market remains above the supports, approaches spring, or whatever it is, the Ides of March. The oldest of the place have always attributed a character bass in late winter and early spring, will be it that alters blood. The truth is that I prefer to think as M. Twain and hope that this month is as good or bad as the others.

The Ibex, despite everything, is below the resistance line, an area that in recent months has been impossible to penetrate. The indicators are somewhat overbought so, barring any positive surprise, it not seems that there will be a break immediately.

The finding by Rajoy that is impossible that what is impossible, despite the tenacity Calvinist from Central Europe, and the unstoppable rise in unemployment; the measures taken are not going to give short-term results, especially for what it really reduces the unemployment is growth, and I fear it is the only one not expect. As the pendulum rule requires, in addition, ministers are now more than ash and give no joy to anyone.

Moreover, the evolution of certain commodities, especially oil, threatens to end to screw the little hope there, that the rest of Europe to grow and pull us.
Bad times for poetry.

Moral hazard

I would like to highlight several recent article, first is an interview with Juergen Stark, ECB chief economist resign shortly to disagree with the policy of the ECB. The other is the article published by Nobel Prize Stiglitz and a statement (rather than paper) from the French president Giscard d'Estaing on the visit to Europe by U.S. Treasury Secretary Timothy Geithner.


In the first, Stark, says basically that the ECB should ask for help since this is a moral hazard. If allowed to help governments "sinners" will not have his "punishment", so in the future does not adequately correct the imbalances. You may forget that they are special circumstances which have focused on certain countries to this situation, except for Greece, other countries have a growth problem, not debt. The markets believe that they are not paid for what they believe incapable of generating income to the debtor countries, not why your debt is exorbitant.


Stglitz reminds us that debt levels have been caused by an excess of liberalism in the financial markets, taking advantage of deregulation have failed to properly quantify the risks. The states have borrowed to save the financial system from collapse result of the greed (greed is good) of some and the overconfidence of others.


Giscard makes the counterpoint of classical Europe, that of the "grandeur". Who are the Americans to teach us? We know sink alone.


At a time when we discuss the role of the ECB contradistinction precisely with the Federal Reserve and the myth that expansion policies with recession generate long-term inflation. The curve of U.S. 10 years should be through the roof in that case. Why markets continue to provide cheap money to the Americans with current account deficits have? Trust ¿?.


How can we generate in the euro zone that trust?