Countries like Greece are being "attacked by financial markets" and the
European Union should intervene in the stock market to "teach speculators a lesson," according to Nobel Prize winning economist
Joseph Stiglitz. Speaking at the London School of Economics Monday, Stiglitz said that the notion of a European Union default is “absurd” but that the EU should show solidarity for its weaker members to stop what he has branded “irrationality” by financial markets.
Talks of a possible bailout for Greece intensified following news that ECB President Jean-Claude Trichet would be cutting short a trip to Australia in order to attend the forthcoming EU Council summit in Brussels on Thursday. A spokesman later said the change was purely logistical.
But Stiglitz, who is advising the Greek government, believes no bailout will be required and downplayed fears of contagion throughout the euro zone.
Note EU-Digest: Mr. Joseph Stiglitz is absolutely right. Speculators, Euro Sceptics and others must be thought a lesson by Governments, because they will always look for the weakest link."
For more: EU Debt Crisis: Europe Should Burn the Speculators: Stiglitz - CNBC
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