Monday, April 18, 2011

Here comes the EU's sub-prime moment!

City A.M. editor Allistair Heath makes that prediction in his morning newswire, linked here.
With Greece in near anarchy, Portugal's Socialist Party refusing to pay for a bail out the Finnish elections have already torpedoed this all seems fairly obvious. Note these quotes however:

HUMAN beings have an infinite capacity for self-delusion, especially when it comes to matters financial....

Greek debt is too high, the interest rates it has to pay too elevated, its underlying economy too feeble – it is now in a vicious circle from which only bankruptcy can deliver it. Greece will default – it is merely a question of when and what proportion of their debt the bondholders will lose. A third, equally important question, is whether Greece will become the first country to quit the euro and maybe even the EU – either because it is kicked out, or because its electorate refuses to become a EU protectorate and walks out of its own accord.....

Last but not least, the European establishment needs to accept that the single currency and the EU’s model of economic management has failed as badly as sub-prime mortgages failed in the US. Unless Europe accepts that its experiment is ending in tears, no progress will ever be possible.

 Feel like crowing perhaps, watch the video on my first posting of today!

But then worry over the consequences of this disastrous mis-governance over so many years, as the resultant state of near anarchy is described in The Guardian, linked here,  from Greece.



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