Attention Economy


Saturday, September 17, 2011

Dumb and Dumber

Treasury Secretary Tim Geithner offers financial advise to Europeans. The European response, as noted in this NYTIMES article, was not surprising:
““I found it peculiar that, even though the Americans have significantly worse fundamental data than the euro zone, that they tell us what we should do,” Maria Fekter, the finance minister of Austria, said after the meeting Friday morning. “I had expected that, when he tells us how he sees the world, that he would listen to what we have to say.””

Meanwhile, Continental Europeans push for a Tobin Tax (tax on financial transactions) to pay for the various bailouts, and, not surprisingly, the two countries with the most powerful financial lobbyists (US and UK) are dead set against it.
See economist Mark Thoma's arguments in favor of a Tobin Tax here:
http://blogs.reuters.com/great-debate/2011/08/17/merkel-and-sarkozy-are-right-about-a-tobin-tax/