Europe and the Election

Our next president will have a very important task: dealing with the looming disaster which is Europe.  The problem is more than just the sovereign debt crisis, which has led to downgrades by bond rating services of the government bonds of Greece, Italy, Portugal, Spain, and other nations in the Eurozone, although that alone is bad enough. What happens when (it is scarcely "if" anymore) Greece defaults on its sovereign debt?  What happens when Spain, a much larger economy, defaults on its sovereign debt?  Both nations today have unemployment rates exceeding 25%, and defaulting will make it almost impossible for these governments to attract bond investors.  Already the rate these nations must pay on long-term debt to attract investors soaks up big chunks of government revenue.  As the action by Moody's two months ago revealed, it is not just particular nations in Europe being affected, but rather the European Union itself. Along with the fiscal disaster is the...(Read Full Article)