19 December 2011

EUROZONE : Opinion: IMF "Bazooka"...Is A Dangerous Illusion.

   MIT economist S.Johnson: OPINION

BLOOM:   "Increasingly, policy analysts in Europe and the U.S. turn to the International Monetary Fund to provide what is termed “the bazooka” -- meaning a lot of money underpinning a scaled-up bailout for Italy, other troubled countries and, of course, Europe’s failing banks.
AND:   "The bazooka is a reference to former U.S. Treasury Secretary Henry Paulson, who famously remarked in 2008 congressional testimony: “If you’ve got a bazooka, and people know you’ve got it, you may not have to take it out.” Paulson was arguing that, if he had the authority to seize Fannie Mae and Freddie Mac, he wouldn’t necessarily need to use it. He was quickly proved wrong."