The financial world is coming apart. What we see today in Greece and southern Europe portends America’s future. The Greeks were in the street because their entitlements were threatened. What will America do when their entitlements are threatened?
The one trillion “Tarp” announced this morning does not address the fundamental problems that the countries of Europe must confront. This is a liquidity solution. It is a printing money deal. Europe is getting poorer and poorer. With all our problems, most of our individual states are better off than European countries, except Luxembourg. Europe is beginning to pay the price for its socialism.
The “Tarp” will make European countries still more inter-dependent and more entraped. The next major act in this saga will be massive inflation or massive defaults. What then?