10-10/11 :: October/November 2010

nanotimes Trends Quotes

“Given the vulnerability of so many eurozone coun- tries, it appears that Merkel does not understand the immediate implications of her plan. The Germans and other Europeans insist that they will provide new official financing to insolvent countries, thus keeping current bondholders whole, while simultaneously creating a new regime after 2013 under which all this debt could be easily restructured. But, as European Central Bank President Jean-Claude Trichet likes to point out, market participants are good at thin- king backwards: if they can see where a Ponzi-type scheme ends, everything unravels.” Simon Johnson and Peter Boone: Europe’s Monetary Cordon Sanitaire, In: Project Syndicate, Nov. 14, 2010

http://www.project-syndicate.org/commentary/john- son14/English

“Europe does not yet seem willing to give up a dia- bolical bargain that has core states lend to peripheral ones so that they can support their banks, all to save financial institutions in the core from losses. This game of bail-outs on the sly cannot be sustained for much longer.” FT.com Editorial: Europe heads back into the storm, November 17, 2010, © The Financial Times Limited 2010

“Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate. It will purge the rot- tenness out of the system. High costs of living and high living will come down. People will work harder, live a more moral life. Values will be adjusted, and enterprising people will pick up from less competent people.” Treasury Secretary Andrew Mellon‘s advice to President Hoover, November 1929

“It’s [situation in Europe] toxic for those countries, and for the financial institutions holding the debt of those countries, but it is unlikely to push the entire European economy into recession. Furthermore, because ECRI’s U.S. Long Leading Index is following the path of earlier so-called ‘soft-landings,‘ and poin- ting to a revival of growth, potential shocks, like this are unable to derail the recovery.” Lakshman Achuthan, co-founder and COO of the Economic Cycle Research Institute:

http://seekingalpha.com/article/240385-lakshman-

achuthan-europe-s-problems-won-t-derail-reviving-u-s- economic-growth

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A123 Systems (AONE) -9.41% (11/29/2010)

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