Europe's Morning After

The smoke has nearly cleared after elections in 6 European countries on Sunday and Monday revealed an angry, fearful electorate who have tired of the pain brought by austerity measures. In France, Greece, Germany, Serbia, Italy, and Armenia, voters sent a clear message to their leaders; let's try something different. The consensus seems to be in favor of heading straight for the fiscal cliff, pedal to the metal. Today, financial markets are taking the measure of the implications, and it is not pretty. Tokyo, the first major market to open closed down almost 3%. The US stock market opened lower and oil dropped below $100 bbl - the result of fears that Europe is not serious about reducing its crushing debt. The democracies apparently lack the will to honestly face the realities of spending at levels that cannot be sustained by the taxpaying capacities of the populace. France, the most prominent example of the rejection of austerity, elected a socialist who has promised drastic change,...(Read Full Post)