A reader of my blog pointed me to an recent articel from Paul Krugman, where he writes:
" ...........I’d like to post a good chart, but I haven’t found a clean presentation of the data. If anyone knows how to do this, let me know! But the basic story seems clear.
And by the way, this makes it quite clear that to the extent that you want to talk about irresponsible behavior, it was really a collaborative, trans-European project. German bankers knew what the Spanish banks were doing, and in fact took on quite a bit of the risk directly by accepting real estate as collateral."
Well Paul, I can certainly point you to the data and the charts as they are provided by the Bundesbank ( 1 ). But when I do this, I have to tell you that the irresponsible behavior you are refering to, is common place and has its roots in your very neighborhood. So you have it straight in front of your nose and you don't need to translate german charts to understand that for example Steve Keen is absolutly right, when he argues with you about endogenous money created by banks and the devastating effects they can cause with that capacity, when they initiate, for what ever reason, sudden and massive reversals of capital flows.
So I feel honored, when you, as a nobel laureate, join me in finger pointing towards the irresponsible behavior of german bankers ( 2 ). However, I would appreciate it, if you could clean up the mess at your door step first. For example by acknowledging that Steve Keens explanations are far reaching and worth to be considered seriously.