This is, by far, the best article I have ever read on hare brained and quack scenarios and ideas. This man is sharp. Lemme post a piece:

Top Orwellian Comments Of All Times

• An American major after the destruction of the Vietnamese Village Ben Tre: "It became necessary to destroy the village in order to save it."
• Vice President Joe Biden: "We Have to Go Spend Money to Keep From Going Bankrupt."
• President George W. Bush: "I've abandoned free-market principles to save the free-market system."

We can safely add "To Save the Euro we Must Cede Sovereignty" to that list.

Unlimited Supply of Hare-Brained Ideas

There have been more hare-brained ideas in the last 6 months on how to save the Euro and the global economy than in the prior three years combined.

Ceding sovereignty to save the unsavable is one of them. A leveraged EFSF is another hare-brained idea. It has already blown sky high.

Here are some more examples.

• Larry Summers says "The central irony of financial crisis is that while it is caused by too much confidence, too much borrowing and lending and too much spending, it can only be resolved with more confidence, more borrowing and lending, and more spending." (Reuters)
• Alan Beattie proposes the ECB lend money to the IMF so that the IMF can take on Eurozone credit risk, in order to get around ECB statues regarding bailing out insolvent nations. Allegedly that needs to happen or it will be another Great Depression. (Financial Times)
• In one of the looniest ideas in history, economist Brad DeLong proposes "The Federal Reserve needs to buy up every single European bond owned by every single American financial institution for cash before the increase in eurorisk leads American finance to tighten credit again and send us down into the double dip. The Federal Reserve Needs to do so now.” (DeLong Typepad)
• In an absurd idea since abandoned, EU officials actually proposed that rating agencies be barred from rating countries with "excessive volatility"

Quack Ideas

In regards to Beattie's proposal EuroIntelligence writes

In the never-ending search for quack solutions to the eurozone crisis, European leaders come up with ever desperate attempts. After the silly idea of leveraging the EFSF, the G20 summit discussed – and failed to agree on – the notion of leveraging the EFSF through the IMF’s special drawing rights (SDRs).

Alan Beattie writes in the FT it is illusory to think that one could bolster the EFSF to €1 trillion through SDRs as such a decision would require approval by the US Congress, with a success chance of between low and zero, he writes. He concludes that the only thing that currently prevents a crisis resolution is ideology. The ECB could lend money to the IMF, which in turn could set up a fund to buy Italian debt.

Interventionists Man the Barricades

In response to DeLong's proposal, my friend Pater Tenebrarum comments in Interventionists Are Manning The Barricades
Another quite funny missive reaches us via the always amusing Keynesian statist Brad DeLong, who argues that given the euro area crisis escalation, the US Federal Reserve should immediately proceed to crank up its printing press. In terms of sheer lunacy his proposal is hard to beat.

The insanity of doing the same thing over and over and expecting a different result ...

Anyway, the whole article is like this. Hilarious. Just what I needed: globaleconomicanalysis.blogspot.com/2011/11/to-save-euro-we-must-de...

And for hightening the experience, let me add some earlier example of such insanity:

https://anonymissexpress.wordpress.com/2011/06/04/breaking-news-lag...