He who places his hope on thee, O Virgin all-glorious, will prosper in all he does.

Inscription on Byzantine coin during reign of Romanus III

Thursday, October 06, 2011

"Orderly Defaults"

Instead, Bernanke worried more about how the default occurs. If it's messy, then Europe could bring down the U.S. with it. But Bernanke asserted that if orderly default occurs, then the U.S. banks should be fine.

Apparently, Bernanke hasn't learned anything from our own "orderly" defaults. During an asset price correction, nothing is orderly. Rather than gilding the lily, Bernanke should make a supreme effort to banish the phrase "orderly default" from his conceptual toolbox.

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