Interesting article

Big difference between positive economics and normative. Pretty much anything of value to traders is going to be found using positive economics. A lot of what distracts novice traders/investors is confusing the positive with the normative. Normative economic articles are often very interesting and sometimes even very well written, and they can be seductive; mistaking what you think should happen (in terms of policy and often even market direction) with what is actually happening is a costly mistake.

So, consequently, I don’t pay much attention to normative economics, and this is reflected in the blog (though I have been known to rant about Chinese exchange rate policy from time-to-time).

But, its Saturday of a long weekend (for those of us trading US markets), so I relaxed a little and have just read a very interesting and well-written article (told ya so). And, I think maybe it blurs the boundaries between the normative and the positive (this is important to traders and especially investors; when the normative transitions to policy and then actions, there are trading and investment implications. Not that I expect departures from/break-up of the Euro anytime soon, but the stresses and tensions are present and increasing, and seemingly it is inevitable that will continue to increase). Maybe some will find this article interesting, too:

Michael Hudson: Breakup of the euro? Is Iceland’s rejection of financial bullying a model for Greece and Ireland?
http://www.nakedcapitalism.com/2011/05/michael-hudson-breakup-of-the-euro-is-iceland%e2%80%99s-rejection-of-financial-bullying-a-model-for-greece-and-ireland.html

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