What do we want? Rules for sovereign defaults. When do we want them? Now.
They saved Bear so they’ll save Lehman. They let Lehman go, so AIG is next. The rules changed from day to day back in September 2008 — and chaos ensued. So, now that Portuguese spreads are higher than the 5% at which Greece is supposedly allowed to borrow, will it too be bailed out? It’s time for a set of rules to define the European fiscal crisis — else Tuesday’s bond market chaos will run and run.
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