Obama and the Looming Financial Crisis

A global financial crisis is becoming more likely, as American political and media elites bury their heads in the sand.  The presumptive leader of the world economy is not even leading from behind.   The members of Congress and President Obama, having exhaled a sigh of relief over extending the debt ceiling, are tripping over themselves in the mad rush to get out of Washington before the relentless heat, often mixed with overbearing humidity, sets in.  However the world and U.S. economy and markets are in the throes of a summer of discontent with a real possibility of genuine global panic in the fall. In Europe, equities are down for the year, investors are fleeing European bank shares (as their exposure to the debts of Greece and other debtor nations becomes more precarious), bond spreads are widening on Spanish, Italian, and now French debt (which relative to Germany, has doubled in a month).  There is now a silent run on the banks in Greece, and Spain cannot...(Read Full Article)