November 14, 2011
Investors' honeymoon with new Italian Prime Minister Mario Monti is already over, but Institute Professor Mark Blyth said this morning on Bloomberg TV that this should come as no surprise. Trying to shore up confidence by bringing in a Euro-technocrat did not really address the real problem. "They're not facing a confidence problem, they're facing a liquidity problem," he said. "And the way you solve that is by having a lender of last resort, and that's what the European Central Bank doesn't want to be."