Pages

Tuesday, May 11, 2010

Appetite for Eurozone bail out fades

Markets across Europe and Dow Futures are all down today after yesterday's euphoria about the IMF/EU $1 trillion bail out faded.  Concerns are being voiced that the deal will help countries like Greece and Portugal but deal only with symptoms not the cause of the problem. For example, systemic under payment of taxes is an ongoing problem in Greece which has only been marginally addressed. There still may be trouble ahead to ratify the deal since French and German voters are reluctant to help these weaker economies when they are seen to have caused their own problems with social security systems they can ill afford. The question is whether throwing hundred's of millions of euro's at these weak economies will ultimately postpone the inevitable defaults on their unsustainable debt.

No comments:

Post a Comment