[MUSIC INTRO] There needed to be more
political integration to make the euro work. And many American commentators
on the euro at the time said there will be a crisis sometime
down the line. And the hope was that when that
crisis occurred, there would be an effective
response. I think the general sense
is there hasn’t. There were two ways of
describing those bailouts. One of them was they were a
bailout of Mexico or a bailout of Argentina. The other one is they were
a bailout of Citibank. They were a bailout
of the lenders. They were a bailout of the big
banks who had not done their job in lending. And the person who is supposed
to be more informed about the criteria of lending should be
the guy who manages risk, which is the bank. And these are the guys that
consistently did a bad job. So if there were a real
commitment to have the European project succeed,
interest rates would be low, the countries could repay,
and there’s no bailout. It’s just making sure
that they can repay. On the other hand, if you start
trying to make profits off of the members of your
family, if you’re going to charge 6% and you have a debt
GDP ratio of 150%, that’s 9% of GDP, it will go
down the drain.