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Pretend and extend in Eurozone crisis. Where is the confidence fairy?

We have yet another faux resolution to the Eurozone crisis which relies on loaning Greece money so it can pay off the banksters. There are some severe haircuts on bond debt to be sure, Greece will buy back some of its bonds at 35 cents on the dollar. But mostly it’s the same old song and dance which solves nothing. Forcing austerity on a country already unable to pay its debt just makes it more impossible for them to do so.

“What we’ll see is, as we’ve seen repeatedly in the last few years, that the economy underperforms in the face of fiscal austerity. The last deal was only agreed a year ago and that deal has fallen apart already. [It] relies on the confidence fairy returning and the economy somehow returning to growth,” said Michael Saunders, Chief Economist for Western Europe at Citi.

Heh, while Sanders almost certainly meant this in the sense of Tinkerbell spreading pixie dust upon all to boost their confidence, it could also be taken to imply a confidence game where Greece is the mark and the objective is to loot and plunder.

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