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Crisis Was Private Debt Socialized Publicly
- The euro crisis was primarily a private debt and banking crisis, not just sovereign insolvency.
- Private debts were socialized via bailouts and conditional troika programs that enforced austerity.
ECB Became Europe's Crisis Lender-Of-Last-Resort
- The ECB evolved into Europe's default crisis manager via QE and Draghi's 'whatever it takes'.
- That made central banking the main stabilizer in an otherwise politically constrained union.
Social Democrats Were Hollowed Before 2008
- Social democratic parties long shifted toward technocratic, market-friendly elites before 2008.
- The debt crisis then punished those parties for abandoning traditional working-class bases.