El-Erian: Europe has no easy solution out of their current death spiral

Mohamed El- Erian says that European government have no first best solution.  What do they do?  Years of spending and transfer payments are catching up to some of the most egregious violators of common sense.  Via Bloomberg

“The Europeans are operating in a world of second and third bests,” El-Erian said in Bloomberg Radio interview on “Bloomberg Surveillance” with Tom Keene. “There is not first best. They look at the benefits and the costs. It’s a very difficult balancing act right now.”

The cost of insuring European sovereign debt has climbed to a record as the crisis that last year led to 178 billion euros ($232 billion) in European Union and International Monetary Fund aid for Greece and Ireland threatened to claim Portugal as its next victim.

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