Wednesday, March 27, 2013
Where is Europe going?
I have so many thoughts on this subject I don't know how to start and what to include. I know I want to make a record of this because I am coming back to it sometime.
Europe is complex, confusing and confused. At least one finance minister has provided evidence of his stupidity: the Dutch one. This is so bad, it is best he quits and every leader distance himself or herself that confiscating bank deposits is a doable idea. Of course he never imagined the Netherlands or its neighbor Germany ever caught in a situation like this.
Today Europe is nothing but just trying to stay alive. They get into each hair as they try to do that. Sometimes they are forced to do worse, like when the big guys beat up the small guys. Think giant Germany against dwarf Cyprus. I can't think of any other simpler way to understand what they are all trying to do.
Meanwhile frightened European money must be rushing for the exit. In the end Draghi at the ECB may be buying time for nothing. There ain't no Alexander Hamilton among them.
Update: March 30
Oh yeah, special case? Except for Germany, here is how to become special quoting the German FinMin
He said the problem in Cyprus was that two large banks were in effect no longer solvent and the Cyprus government did not have enough money to guarantee savings.
Continue to kick the can down the street and see what happen to more and more Euro members.
Posted by PengYou at 9:51 AM