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Plan For Leveraging Euro Bailout Plan Taking Shape


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If they can get the fiscal side of the Euro-zone unified...constitutionally...then members would be far better off staying within the zone.  That means one central fiscal body that implements measures to rectify deficiencies in the future.  Tough to pass, but if it did, it would truly make for a substitute currency for the U.S. dollar.  At least until some of the Asian countries form such a union...but far less likely to happen due to political differences.  Cheers!

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It will be interesting to see what happens in the event that some country wants to get out of the euro, especially after this goes through.


It will be even more interesting when some country wants to default or to see the size of the wrtedowns on those bonds......then all we need to worry about is the slowdown in growth.




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I have got a question. It seems EFSF treats the whole Europe current problems as a confidence problem that will fade out over the years. It seems like an odd logic to restore confidence today with bonds warranties; but what about restoring confidence in one of the two following scenarios:


- 3 years from now, the economies will have more debt and a similar GPD. Not pretty good for confidence.

- 3 Years from now, the economies will have less debt but shrinking GDP. Really not good for confidence.


I believe it's not a confidence problem, it's a deficit problem.



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