How Europe could sink Obama’s election chances
From the American standpoint, the best outcome is concerted European action to keep Greece within the fold, while the second best outcome is a strategy that delays the inevitable until Europe can strengthen its defenses against contagion.
But there’s a problem: Many key European officials and observers have concluded that a Greek exit is both inevitable and manageable. A lengthy article in Der Spiegel makes this case, going so far as to argue that the consequences of doing what would be necessary to keep Greece in the monetary union would be worse than allowing it to leave. And Germany’s powerful Bundesbank agrees. Its most recent monthly report states: “A significant dilution of existing agreements [concerning Greece] would damage confidence in all euro area agreements and treaties and strongly weaken incentives for national reform.” Crucially, Germany’s central bank has concluded that Europe could successful deal with a Greek exit: “The challenges this would create for the euro area and for Germany would be considerable but manageable given prudent crisis management.”
To be sure, many other leaders—especially in France and Italy—are far more concerned about Europe’s ability to contain the consequences of Greece’s departure. France’s new president, Francois Hollande, is pushing the European Central Bank to provide further liquidity and intervene in sovereign debt markets. But the stark fact is that right now these leaders’ views don’t matter all that much.
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Greece will not accept the austerity measures. They probably will leave the Euro and it will be a mess. According to ZeroHedge there is now a run on banks in Spain.
Italy, Portugal and Ireland are in trouble. The UK is in recession and we are very very close to it as well. A potential perfect economic storm is queuing up.
dogsoldier on May 25, 2012 at 4:48 PM
Obama is the contagion within our shores. If we have to deal with the fallout of an EU implosion as a wake-up call to Independent voters to fire him, I’ll take it. Hell, I’ll say it – I’m rooting for it. Sometimes things need to get worse before you realize how badly you need the cure.
The Count on May 25, 2012 at 4:55 PM
WRONG – it’s in the hands of the German people/taxpayers, you fool.
You swine of an author – the German people shouls condemn you to Hades and Obama and Merkel too. Enough is enough.
This is not about “short-term politics, nationalist myopia, and misplaced moralism”.
This is about those who work hard, save, and live in reality, versus those who schluff off, party, and play socialism/communism.
You and Obama can go straight to Hell. Yes, I know, it’s a repeat.
No need for the bi-lateral conference. At Camp David, you can take this to the bank, all Obama talked about was “save me, save my re-election, please, please”. Even Merkel and the Canadian PM agreed, knowing full well that he can go to Hell.
Schadenfreude on May 25, 2012 at 4:55 PM
It’s probably better for Greece if it gets out, starts printing devalued drachmas, and avoids a bloody revolt.
This has very little to do with our Dear Leader. The economy is going to suck regardless in early November.
spiritof61 on May 25, 2012 at 4:57 PM
Greece will sink Greece, as it s/b.
Europe will sink Europe, as it will be.
Obama will sink Obama, as it s/b.
Schadenfreude on May 25, 2012 at 4:57 PM
Sehr richtig.
spiritof61 on May 25, 2012 at 5:02 PM
Every single Romney speech on them economy (come to think of it, every Romney speech) should have a reminder that Obama wants the US to be more like Europe.
blah blah blah on May 25, 2012 at 5:06 PM
He doesn’t mention it in every speech, but he’s brought it up frequently, so he knows he needs to make that connection.
Doughboy on May 25, 2012 at 5:10 PM
It was incredibly stupid of Germany and Austria to renounce such strong currencies ‘for the greater bullshit, er good”.
Britain, retaining their old currency, rant on Germany now. Go to Hell.
Schadenfreude on May 25, 2012 at 5:11 PM
Merkel, the once clear-headed former Eastern German has morphed inot an incredible socialist fool. May she lose every single election, not that something better would ever follow over there.
However, such stupidity must be punished.
Schadenfreude on May 25, 2012 at 5:14 PM
Paging Nigel Farage…Check out his speeches on YouTube. It’s like watching Churchill in the 30s.
spiritof61 on May 25, 2012 at 5:35 PM
Why do so many articles keep saying that? “Allowing” Greece to leave?
Newsflash: Greece is dug in like an Alabama tick. The only way they’re leaving the EU gravy train is kicking and screaming every inch of the way.
logis on May 25, 2012 at 5:46 PM
This^^^
hillsoftx on May 25, 2012 at 6:16 PM