If the project needed a deadline extension from Congress to hold on to the $1 billion in federal aid, many note, it is not clear that it could get one in this fiscally weak environment.
It is also understandable that investors are clamoring for the introduction of euro bonds, because they could then recoup the losses on their investments in the fiscally weak countries' debt.
He reasons that if the league aims to save the fiscally weak teams through a salary cap lower than current salary levels, it would be "the height of arrogance on the part of the owners" to assume that the players would accept a rollback.
Here's what would happen: "Exit, partial or full, would likely be precipitated by disorderly sovereign defaults in the fiscally weak and uncompetitive member states, whose currencies would weaken dramatically and whose banks would fail," Mr. Buiter wrote at the time.
The procedures weed out fiscally weak, poorly managed developments and reduce taxpayer exposure to future losses, the FHA says.
"Already weak fiscally, this should call for reducing energy subsidies.
"A breakup of the Euro Area would be rather like the movie 'War of the Roses' version of a divorce: disruptive, destructive and without any winners," he wrote, describing how "even a partial one involving the exit of one or more fiscally and competitively weak countries, would be chaotic".
Or third, Berlin could become to Athens what Washington is to Sacramento — that is, fiscally stronger European governments could offer their weaker neighbors enough aid to make the crisis bearable.
