April 8, 2013
What Will Happen to Europe?
Europe is swirling in a maelstrom, and it is hard to see what can save the mother continent of so much we cherish. The sovereign debt crisis -- national governments which cannot honor their promises to repay holders of their bonds -- is spreading from the original PIGS (Portugal, Ireland, Greece and Spain) to neighboring nations. Italy is the worst new case, but France now has a "negative" bond rating by all three of the major rating services -- Fitch, Moody's, and Standard & Poor's. Belgium, Holland, and Austria, countries associated with the relatively prudent finances of Germany and Britain, each have two negative ratings (although in the case of Holland, one is just a "negative watch") from the three bond rating services and only one "stable" rating. At least as troubling is the reaction within Europe to the sovereign debt crisis, as when Chancellor Merkel visited Greece last October and was mocked as a Nazi. This sort of blame game also...(Read Full Article)