European bailout agency may need bailout

Years ago, the Cuyahoga River caught on fire.  Of course, at the time, the pictures and film of the burning river begged an obvious  question:  "Put out the fire, certainly yes! But with what?"  How do you put out a burning river?  Douse it with more water?  The same is true as the EFSF (European Financial Stability Facility) which has just been downgraded by S&P.  EFSF was supposed to be the reservoir of water to quench the sovereign financial fires that are burning out of control all over the continent.  Now S&P is saying that the bailout instrument is inadequate to the task.  But this is hardly a surprise. After all, the EFSF is the financial end product  of bankrupt nations pooling their borrowed money together to bailout...bankrupt nations.  What could possibly go wrong? Greece is going to fail and they will default on their loans, which everyone knows they will never be able to repay.  Not good, but not a...(Read Full Post)