Do you feel shocked and awed? Well do you, punk?

Posted By Daniel W. Drezner Monday, May 10, 2010 - 4:14 AM Share

So, the question of the day is, will bond markets feel suitably shocked and awed by the eurozone's decision to throw more than $950 billion at the Greece problem in order to prevent the spread of contagion?

For some reason, I can't get this scene from Dirty Harry out of my head when I think about the answer. To paraphrase it for our purposes, wouldn't this whole drama be easier if some eurozone finance minister could confront bond traders with the following speech:

I know what you're thinking. Is this my last rescue package, or do I have another source of credit in reserve? Well, to tell the truth, in all this excitement I kinda lost track myself. But being this is a €720bn rescue package, the most powerful one in the world, and would wipe away any short position you've taken in the past week, you've got to ask yourself one question. 'Do I feel lucky?' Well do you, punk?"

The thing is, Dirty Harry is a lot more convincing than Angela Merkel.

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UMESHGEETA

10:33 AM ET

May 10, 2010

European Package

I think so - with this coordinated action, there is much better chance of Europe addressing the Market turmoil. I think it addresses one of the two core problems here - Europe wide bailout instead of expensive, ineffective and capital wasting piecemeal bailouts. The problem of 'competitiveness of weaker economies and their ability to repay back debts' is a complicated one and lot more political in nature. Seems like the game plan is with this first part in place, Europe gets necessary time to start addressing this second issue as well as chances of America going into 'double dip' are contained, along with that more or less entire global economy too.

But the key thing what we want is Prof. Drezner to shed light on what transpired in G20 meeting, how are Asian and non-European / non-North American Economies are coming to the rescue. What I am trying to read 'tea leaves' is to what an extent we are getting 'globally coordinated action' here. Lots of pointers in that direction but more details are needed. Next question is, as a result, has Europe at least temporarily halted the movement of global economic policy making turning into simply G2 (USA & China) affairs? It is true that Europe still has a long way to go in shoring up these weaker economies as well as start taxing / increasing productivity to pay its share of Half a Trillion Euro bailout component.

Somehow I get the sense of bit of 'Western Front' in all this, kind of a serious effort on part of older Western powers to retain their relevance in the face of tremendous challenges thrown by China and Asian Economies as well as limits of Welfare States which they are realizing.

More on http://www.21stcenturypolitics.com/

BOOKFISHER

12:35 PM ET

May 10, 2010

Well it beats the previus:

" The financial markets will look up and shout "Save us" and I will whisper "Nein""

I have a giddy little fantasy about a Tobintax to finance this fund later

CLOUSEAU

7:54 PM ET

May 10, 2010

Hmmn

Don't know about you, but I find Angela Merkel pretty scary
and she seems to have more balls than any of the other EU leaders

BOOKFISHER

10:59 PM ET

May 10, 2010

That was old Merkel

Merkel was kicking ass when she was in the grand coalition with SPD(socialdemokrats), then the election genii granted her wish and she then ruled with FDP(market liberals), which started a britneyspearsian de route of tax cuts, a "warlike" situation in Afghanistan and coalitionpartner Guido Westerweller who makes Biden sound like FDR

JAYDEE001

4:42 PM ET

May 13, 2010

AWESOME

I thought your paraphrasing Dirty Harry was great! Best laugh I have had this week - and it would be fun if Angela Merkel knew about Dirty Harry.