About the Washington post article.. did the author remember that Britain does not use the Euro? They are still on the Pound, though they are a member of the E.U. Therefore, what the rest of the E.U. who use the Euro does, does not directly affect them, and it could only hurt their country if they use the Pound to try to bail out the fiscal irresponsibility of some of the member states of the E.U. It would be best for them to ‘sit out’.. they did not ‘hold out’ – different, yet important, meaning.
And of course they want to look to the U.S. to bail them out.. while we are trying to put our house together after blowing it up with loose credit. Considering that a large segment of TARP money went to European banks, I think they need to be careful on that request.
Personally, I never thought the Euro was going to survive. You had responsible governments mixed with irresponsible. Normally currency exchange rates ‘adjust’ to compensate for the fiscal well being of a country. If the exchange rate can’t adjust, then something else has to give – which would be the spending behavior of that country’s government — austerity. Either way, the Piper has to be paid… either by the children/descendants or by those that incurred the debt.
