Nick Rowe writes,

The Tea Party makes life difficult for the Lender of Last Resort, because the Tea Party wants some sort of guarantee it will get its money back. And that guarantee can never be made cast-iron. If it could, you probably wouldn’t need a Lender of Last Resort in the first place.

He is referring to the European version of the Tea Party.

The elites say, “We need to bail out the Greeks, who retire early, don’t like to pay taxes, and have an ineffective and bloated government.”

The European Tea Party says, “*(&^#%!”

The elites say, “But if we let the Greeks default, then the banks that lent them money will fail.

The European Tea Party says, “*(&^#%!”

Rowe also points to Mish Shedlock, who concludes,

One way or another Greece will default. The sooner the better, actually.

That’s what I kept saying about mortgage foreclosures over here. The sooner the better. Delaying a financial reckoning is rarely the best approach.