And then, of course, the long-term or even mid-term effects on the economy would be significant on growth and on job creation.

WHITEHOUSE: Press Briefing

Greenspan explains that because lower deficits will restore confidence, diminish the threat of inflation, and allow savings to flow to private-sector investment rather than public-sector consumption, the short-term pain will lead to gains both in the mid- and long-term.

FORBES: Austerity Vs. Stimulus: The New Ideological Divide

It is likely the reaction this time will be the same -- compensation will rise, but banks in the mid-to-long term won't need to have to pay big basic salaries and slowly businesses that don't need to be in the EU will cease to be.

CNN: Would EU bonus cap spark banker flight?