50% or nothing

A New Idea to Save the Common Currency
wut?

Germany's Left Party [Die Linke] is not often associated with neo-liberalism. But a new proposal from a senior party member could provide a way out of the cycle of bailouts and bank aid. Why not just reboot the market economy and then cushion the fall?

good bank/bad bank?

Wagenknecht calls for a radical debt haircut. "The EU member states should resolve that all sovereign debt above a certain level will not be paid back," she writes.

the biggest debt restructuring in history so far liquidation?

Following a "technical moment of insolvency," her plan calls for the state to inject fresh capital into the banks so that they can continue serving those sectors that are required for the economy to function. In other words, they [which banks?] would manage customer accounts and extend loans to companies in the real economy, thereby fending off a recession. Much of the investment banking sector, on the other hand, would be liquidated as part of the insolvency proceedings.

perp walks to austerity?

Euro-zone states would be able to receive a certain amount of financing directly from the European Central Bank (ECB), but only up to a certain maximum -- Wagenknecht suggests capping it at 4 percent of GDP annually...

JUBILLEE!
"At the moment, the ECB is pouring money into the banks in the hope that they will invest a small percentage of it in sovereign bonds," she writes. "It would be much more efficient to give this small percentage directly to the states."