Austerity, Sub-Prime Lending, and the Safety of Savings Accounts

“It is hard to imagine a more stupid or more dangerous way of making decisions by putting those decisions in the hands of people who pay no price for being wrong.” – Thomas Sowell

Austerity has not worked well in the EU if you ask Keynesian economists and supporters; they will tell you that austerity does not work, citing the EU experience. Italy, Greece, Portugal, Spain, and the U.K. governments claimed that austerity measures resulted in stratospheric unemployment rates and slow economic growth.
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Cyprus and the European Union Excess

For the past two years, the EU has struggled to keep its tenuous union intact, a union based on a common currency adopted by some of the members. As Italy, Spain, Greece, and Portugal economies downturned, it did not surprise many because their admission into the EU was questionable at the time – there is a reason why they were called the PIGS (Portugal, Italy, Greece, and Spain) – they never ran their socialist economies responsibly, spending on social welfare with abandon.
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