Politicians Running After Markets
Politicians must answer to the markets
Germany's Angela Merkel had this rather amusing comment in an interview with ZDF television this week in the context of rejecting euro bonds (again) as a possible solution:
“It will not be possible to solve the current crisis with euro bonds,’’ she said. She added that “politicians can’t and won’t simply run after the markets.’’
“The markets want to force us to do certain things,’’ she added. “That we won’t do. The markets want to force us to do certain things. That we won’t do. Politicians have to make sure that we’re unassailable, that we can make policy for the people.”
Good luck with that. Governments still rely on public markets to get enough money to get through the day, week, month and year. “The people” can’t bring a country to the brink of financial disaster in mere days. The markets can.
To paraphrase Mitt Romney: financial markets are people, too.