« Look who's headed to Chicago for the NATO summit | Hard to believe Obama didn't approve literary agent listing him as born in Kenya »
May 17, 2012
Could Europe decide our election?
The fate of President Obama's re-election is probably in the hands of a few European leaders who will decide in the coming months how far they are willing to go to save the euro. The coming "Grexit," or Greek exit from the euro could be far more damaging than previously realized. Spain's banking sector is under enormous pressure and hints that Greece might leave the euro have Spanish depositors fleeing their own banks for safe havens in sturdier corporations in Germany and elsewhere. Just last week, the Spanish government took over the 4th largest bank and number one mortgage lender Bankia. This caused a $1 billion run on the bank's deposits. There are also concerns about Italy's tottering banks and weakness in the French banking sector as well. No one knows what will happen to these banks if Greece were to return to the drachma. What is clear, is that any such move will cost hundreds of billions of dollars - most of it underwritten by an increasingly reluctant Germany through the...(Read Full Post)