The ongoing economic tragicomedie across the continent continues to drive the financial discussion. It now appears that bankers and Politicians are getting the message: the problem is bigger than any one country and that the only solution with any degree of success is cooperation. Cooperation among sovereigns and bankers alike. Ben Bernanke of the USA is made to look good as US Treasuries have become the "go to" refuge for investors. Rates are at all time lows; lowest since 1789, the days of Alexander Hamilton!
So, can the Euro Union survive? Given that Greece is the least of Europe's problems, it looks like governments will finally realize they are all in the same boat, lifeboat, if you will. For the future to work, they need to clean up the agreement that bound them together in 1999 in the first place. That hastily written document left too many loose ends that apparently have been the basis of the financial woes hanging around the collective necks of the 17 Euro member countries. Yes, the german bankers have to look in the mirror and say, "Yes, I gave them loans from my bank."
Mediterranean countries have to admit they lied and cheated on their records and record keeping. Now the day of reckoning is at hand. Can the pull it off? After changing leaders in 11 of 17 countries, the citizens have used most of their ammunition. Now comes the hard part: putting a plan in place that will solve the problems, not a plan that will please everybody.
Stay tuned.
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