Monday, June 15, 2009

European Payrolls Are Crashing

Link here.

Remember, we were a very early voice, probably the first voice in the financial blogosphere, concerned about a possible failure of the European Union. This was at a time when Federal Reserve actions were considered laughable by many. Although the Federal Reserve policy has actually become dubious on many levels since its initial responses to this crisis. We now see the Federal Reserve is attempting to bail out "chosen" corporations instead of advocating policy of saving the general market, the interests of the American people and the core of the U.S. financial system.

Even many bears were pointing to the Euro as a sound currency and the ECB as a purveyor of model central bank policy comparative to the Federal Reserve. The financial bloggers and pundits advocating this view were numerous. Even a favorite of mine, Marc Faber, was behind this farcical position. Indeed it was and is farcical. (A little of Marc's European elitism showing through eh? Sometimes Europeans just can't help themselves when it comes to talking about the dumb Americans.)

Destructive forces are still building in the European Union. And I still believe a crisis and unwinding of the EU remains a substantial possibility.
posted by TimingLogic at 10:34 AM