-- Greece, Portugal, Ireland and now Spain in toilet.
-- The EU leaders in January (Germany, France) pushed for more EU control of banks before just throwing money at them
-- The same issues exist today with no change
-- Spain, hit by high debt and high credit rates now pleading for a European Union to overlook the important banks
-- Merkel (Germany) has no problem with one for a long-term solution as long as the organization gets some CONTROL over the banks and not just a slush fund to bail out banks. Thus AUSTERITY programs by individual countries MUST be implemented
-- Thus, the June 28 EU summit will again thrash the same solutions but with more countries in the toilet
-- What is the short-term solution? Someone will bail out Spain, like Greece and others, financing more debt at lower rates, and the EU will get another 3 months to rehash the same old things.
As a retired consultant I find this appalling that the leaders can't COMMIT to a scheduled week long meeting that only ends (Yes...never-ending if solution not agreed on) with a documented, agreed upon short-term and long-term solutions. So far, they only agree to we'll-think-about-it or come-back-with -more-detailed-plans next time or we-agree-with-this-while-you agree-with that. What a sad world! As I said in previous posts, don't expect any solution (real solution) before July. Also said, don't doubt our Fed will sit on its hands to wait on a solution before it jumps on the stimulus wagon again. Expect a political move before elections sometime in July to flood the market with false dollars that the new president will have to eat.
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