3 Lessons From the European Mess.
Question: A Greek, an Italian and a Spaniard walk into a bar. Who picks up the tab?
Answer: The Americans.
The Cambodia Daily, Dec 6, 2011
All financial eyes are once again trained on the European debt crisis, with investors worldwide wondering how it will play out. Not well, I’m afraid. Not well for the Europeans to be sure. And it will be costly for Americans, too.
Some of the pain has already been felt by investors who had accounts with Jon Corzine’s MF Global, now bankrupt from chasing higher-yielding bonds in the Eurozone. After a lifetime in high office and at Goldman Sachs, Corzine must have thought that if anything went wrong, everybody on Wall Street would just get bailed out again. He may have been right about that in the long run, but his timing was off……………………..
3 Lessons You Must Learn From Europe
#1: The problem is bigger than the conventional wisdom acknowledges.
#2: The solutions advanced by the governing classes are inadequate to the problem.
#3: With each new initiative the media breathlessly report that the problem has been solved. The equity markets take a ride on those reports.
……………………