Tuesday, April 3, 2012

The Euro Crisis Is Over but No One Told me

Yesterday I caught the tail end of  an MSNBC commentator saying something to the effect: "Now that the Euro crisis is over...." This caught me by surprise. Yes, bankrupt Greece received a tranche of rescue funds (and was declared officially bankrupt). These funds were given on the condition that Greece stick to the austerity measures promised by its two major parties. The conservative government in Spain is apparently amending bit by bit its austerity measures. In France, the socialist candidate currently stands to beat Sarkozy in a run off election. In Spain and Portugal there are almost daily demonstrations and riots. Greek palace guards must be equipped with special eye drops for tear gas. Yes, Germany apparently agreed to increase its contribution to the stabilization fund to the outrage of German voters. Newspaper accounts inform me that few Irish are paying their property taxes.

The Euro crisis is far from over. Imagine that the two major Greek parties lose to the nationalists, communists, and other splinter parties, the Spanish conservative government dilutes austerity, and the stimulus-inclined socialists win in France. Those saying the crisis is over would be proven fools.


  1. The persistence overvaluation of euro is instructive.
    Ули́та е́дет, когда́-то бу́дет.
    (The snail is coming, who knows when it arrives.)