New Signs of Eurofail as Sarkozy Preps For Downgrade
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  • Is it me, or are we witnessing an exponential increase in political posturing commensurate with our inability to actually solve basic problems?

  • Kevin


    I thought Hollande was a she, not he.

  • JDW

    So, the French plan on turning things around by throwing Sarkozy out and electing a commited, career Socialist in Hollande? WTF!

  • realtat

    Kevin,Maybe you are thinking of Martine Aubrey, another socialist.

  • Charles R. Williams

    If French banks are highly leveraged, too big to fail and invested in Italian public debt, then Italy’s debts are France’s debts. The same argument applies to Germany with respect to France’s debts and Italy’s debts. This is a tsunami that cannot be stopped with sandbags. The Europeans cannot stop the contagion by papering over reality. On the other hand a AA credit rating is not a catastrophe for France and even for Germany.

    What is needed is a restructuring of European banking that permits any nation to default on its debt without dragging down the others. Until this happens unsustainable government spending in certain nations will continue and every nation’s credit ratings will decline.

    Austerity in Europe is inevitable and the longer it is delayed the more painful the adjustments will be. The unresolved question is how much of the pain will be born by German taxpayers. This is the real dispute underlying all the phoniness and posturing.

  • teapartydoc

    Whenever these sorts of things begin to happen one must realize that entrenched interests are being protected at the expense of the nation or confederacy as a whole. Reform does not happen because of how powerfully those interests are entrenched, and they probably had a hand in making up the rules of the game either in the first place, or at least transformed them to suit their needs over the years. Reform eventually occurs as a result of crisis. It is the ability to see the need for reform and act on that need proactively that Hamilton referred to as the ability to alter constitutions by reflection and choice rather than by accident and force. The leadership in Europe are not truly engaged with the problem, but rather with the interests. Things are not looking good.

  • I predict they’ll be able to stall off any major catastrophe until January and then the Mayan predictions will start looking pretty prescient. Just think, 150 years of advances in the Western world will be zeroed out in just a few decades of socialist experimenting.

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