Borrowing Euros

Welcome to Neverland!

Another picture for Andrew’s “I Love Me!” wall.

Second star to the right and straight on ‘til morning, Peter Pan told Wendy as they flew to London to announce on Monday that the Neverland government had a new deal that let them borrow even more money in a more expensive currency to keep afloat the government at home. In the old city, Peter rang the bell and signed the guest book at the Stock Exchange and all was splendid.

For reporters later, Pan compared it to shopping around for a new mortgage. He told them more borrowing would diversify our debt, lower the cost of borrowing, and give lenders in Europe the chance to get in on the investment action in Neverland.

Pan said it was proof Neverland’s finances were in better shape than they were and that the risks were “very, very, very small.”

All the world is made of faith, and trust, and pixie dust, the pair said in one way or another, without a sense of self-awareness or irony or embarrassment.

But pixie dust and happy thoughts only make you fly in imaginary places.

In the real world, nothing could be further from the truth.

Here is some background and a few observations.