Saturday, March 31, 2012

Europe bubbling like a pot.

The gloom and doom, end of the world, talk has died down in the MSM after the Greeks gave a haircut to their creditors. It's been a couple of weeks since I last saw a "The Euro is Doomed" article.
But all is not well in Euro land. Today's Economist has a cover story on the coming French bankruptcy. And the WSJ reports that the German central bank will no long accept bonds from Ireland, Greece. or Portugal as collateral for loans. And the European Stabilization Mechanism is only E500 billion. Which is just barely enough to bail out Portugal, but nowhere near enough to bailout Italy or Spain. And the Economist is still calling for "more European integration" by which they usually mean Germany will guarantee/bailout everyone else. The Economist thinks this is a wonderful idea. The Germans aren't on board with it, and the Economist blasts Angela Merkel and the Germans as reactionary stick-in-the-muds every time it hears a German begging for a little air.
We need to pay attention, 'cause we will be next.

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