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"When it becomes serious, you have to lie" - Jean-Claude Juncker, Luxembourg PM and Head Euro-Zone Finance Minister http://blogs.telegraph.co.uk/news/davidhugh

"When it becomes serious, you have to lie" - Jean-Claude Juncker, Luxembourg PM and Head Euro-Zone Finance Minister http://blogs.telegraph.co.uk/news/davidhughes/100087136/he-may-be-a-prime-minister-but-he-admits-he-lies-his-way-out-of-trouble/ http://blogs.telegraph.co.uk/news/davidhughes/100087136/he-m...

hkmurakami 13y ago
Thanks for the link! This line was hilarious: Hilariously, Schuller went on to say that being caught out lying in this way would not undermine the market’s confidence in future eurozone pronouncements – because it already had no confidence.
btilly 13y ago
Anyone who has been anywhere close to finance knows that this is true. The economy is largely about psychology and perception. If someone in a position of authority stands up and says that the sky is falling, they can cause the sky to fall even if it wasn't about to. It is the same problem as the classic run on the banks. Even a fundamentally healthy bank is going to be in trouble if everyone asks for their money back at once.
- wintersFright 13y ago
  yep - it also just means that right up until a bank holiday and your account is frozen, the official line will always be everything is fine, the bank is well capitalised and there is nothing to worry about...unless you are well connected in which case you will get a whisper to move your money out). So if you aren't one of the well connected people, it pays to be a little paranoid and be first in line to withdraw your money while you can. It's kind of funny, the rational action for any individual is not to keep most of their money in a bank where it is at risk of going away with zero notice. The confidence of the banking system relies on everyone being irrational!
marcamillion 13y ago
Well...I mean....can you blame him? In an economy where perception is reality - if the central bankers and main regulators start screaming that the house is going to burn down...guess what happens....exactly. So if they think the house may burn down....they have no choice but to lie to stave it off as long as possible.

hkmurakami 13y ago

Thanks for the link! This line was hilarious: Hilariously, Schuller went on to say that being caught out lying in this way would not undermine the market’s confidence in future eurozone pronouncements – because it already had no confidence.

btilly 13y ago

Anyone who has been anywhere close to finance knows that this is true. The economy is largely about psychology and perception. If someone in a position of authority stands up and says that the sky is falling, they can cause the sky to fall even if it wasn't about to. It is the same problem as the classic run on the banks. Even a fundamentally healthy bank is going to be in trouble if everyone asks for their money back at once.

wintersFright 13y ago
yep - it also just means that right up until a bank holiday and your account is frozen, the official line will always be everything is fine, the bank is well capitalised and there is nothing to worry about...unless you are well connected in which case you will get a whisper to move your money out). So if you aren't one of the well connected people, it pays to be a little paranoid and be first in line to withdraw your money while you can. It's kind of funny, the rational action for any individual is not to keep most of their money in a bank where it is at risk of going away with zero notice. The confidence of the banking system relies on everyone being irrational!

marcamillion 13y ago

Well...I mean....can you blame him? In an economy where perception is reality - if the central bankers and main regulators start screaming that the house is going to burn down...guess what happens....exactly. So if they think the house may burn down....they have no choice but to lie to stave it off as long as possible.