The problem with bailouts is that nobody ever learns

This post from Edward Hugh is to wonkish for most mere mortals to read. But everyone should pay attention to this….

So basically, “Big Ben’s” US bailout is fuelling specualtion on Hungarian debt!

And don’t miss this point from the Bloomberg article:

Deutsche Bank recommends investors sell the euro against the forint on bets the rate difference will help the Hungarian currency gain 10 percent to 260 per euro in two to three months from 286.55 today. Investors should also sell the dollar against the lira and buy the ruble against the dollar-euro basket, the bank said.

And it isn’t only Deutsche Bank, Goldman Sachs recommended on April 3 that investors use euros, dollars and yen to buy Mexican pesos, real, rupiah, rand and Russia rubles.

Links For Today

Maybe America should let the Taliban win. At least then the world would not be giving billions of dollars in aid to a nation that is expanding its nuclear arsenal even as it is fighting a civil war and is unable to support itself economically. It just shows how insane the world is that nobody has the backbone to put a stop to this.

Michael Yon on combat tracking.

Best slam of California ever: “By the way, West Virginia balances its budget.”