An article in today's links deserves a post all of its own because it is so important. Recently the ECB conducted a eurosystem household finance and consumption survey and people have been talking about it because it shows that household wealth in places like Italy and Spain is greater than it is in Germany. About Spain, for example, the question people are asking is "why is Germany bailing out Spain when mean Spanish wealth is greater than mean German household wealth?" Another variant of that question is "why did government need a bank bailout when median net wealth is 182,700 euros and mean net wealth is 291,400 euros?"
These are good questions and I tried to get at some of it in the first part of the weekly on the euro crisis. I don't have an answer to those questions here because th...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.