THE.CAT has found a possible solution for the eurocrisis. I have found a solution just remembering a traditional Catalan sweet dish. the PANELLETS.
For All Saints in Catalonia we eat a small cake called PANELLET. It is delicious and also very expensive. It is about a half of an egg and it may cost about one euro. But people do not buy normally one panellet. You buy a dish of panellets or you buy in kilos.
So because the panellets are so expensive some people cannot afford to buy the traditional one so there are other kind of panellets that are cheaper but that cannot compare at all with the original panellets. So, it you have money maybe you buy a dish made all with the expensive delicious panellets. If you have not much money you have a problem. You could buy the cheap panellets but they are not the real panellets so it would be a bit weird just to buy that. So, the Catalan commerce invented something: they created different dishes with different proportions of good and not so good panellets! So if you are wealthy you can buy a dish made all of good panellets. Or you can buy a mix.
Well, the invention here was to let the buyer choose according to its needs.
So these dishes of different of panellets has given me the idea that the eurozone bonds are a little like the panellets! The good panellets are the German ones but they are two expensive (little return) The peripheral bonds would be the not so good panellets but with quite cheap (good return)
So if you compare panellets with eurozone bonds it is easy to see that eurobonds would mean to take good and bad panellets and to make another new panellet that would be nor good nor bad.
So I have thought that the best would be to creat a kind of bond that is like a dish of panellets. I call it the EUROBOUND. It would be a mix of different eurozone bonds. It would have a mix of different bonds but in contrast with yet nonexistent eurobonds you may lose money depending in how much you wan tto risk.
You would go to the bank and you would say: I want one eurobound at 3 per cent interest. Then they would give you a aurobound that the exact proportion of eurozone bonds that make the new bond to yield a 3 per cent interest. If one of the eurozone bonds went bust you would only loose that part.
One could say that now you can already make that kind of bag but what I mean is that is is a bag that is sold and promoted by the governments! So that a part of the bonds of each country can be bought in this way!
I don’t think it is such a bad idea. I may would like to buy Spanish bonds as the interest is high but I know they are more risky than German bonds. But I do not want just buying German bonds because they give few interest.
In the shops in Catalonia they do with panellets what I propose for the eurozone bonds. It is a good way to save money (good interest in case of bonds) and at the same time to taste some of the traditional panellets (less risk in case og bonds)
Unfortunately, if the current situation of the bonds in th eeurozone was translated into panellets it would mean that when you would like to buy panellets you would only be able to buy extremely expensive and delicious panellets or very cheap but awful panellets.
It seems so that common people in the supermarkets of Catalonia know more about how to sell their products to earn money than the eurozone chiefs of state know how to sell their bonds to earn credibility.