Why austerity in Europe will continue

Editor's note (5/13/13): this member post is now outside the paywall to agree with this post by Roger Altman at the FT indicating that markets and not politicians are forcing the euro zone to either backstop sovereigns or face default. In the absence of the ECB going all in - which they cannot do by law, austerity is assured.
I have been sidetracked recently, but I am still in the process of finishing my European overview that I began two weeks ago. One important event which has occurred since I started writing it is the debunking of Reinhart and Rogoff. Credit Writedowns carried two posts on this last week, one from me and one from Andrea Terzi. But I would like to follow up in this daily commentary with some thoughts on Europe and Reinhart-Rogoff because I believe austerity in Europe w...

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