Monday, September 19, 2011

German Thumbs Down

Here comes the rain again
Falling on my head like a memory
Falling on my head like a new emotion
--Eurythmics

Over the weekend,German Chancellor Angela Merkel's party was defeated in a Berlin state election. The defeat casts doubt on continued German support of EU bailouts.

Germany is the 'have' while nearly all of the the other EU countries are 'have nots.' The multi-trillion dollar question is whether the haves are willing to bail out those who have acted imprudently.

These election results suggest that the answer to that question is 'no.'

Markets are off sigificantly this am.

position in SPX

1 comment:

dgeorge12358 said...

I will not let anyone tell me we must spend more money. This crisis did not come about because we issued too little money but because we created economic growth with too much money and it was not sustainable growth.
~Angela Merkel