Thursday, May 13, 2010

Euro Continues Lower

The Euro is now below 126 against the dollar -- a vote of no-confidence in the massive Trillion dollar bailout by the Eurozone for its more profligate members. In time, the bailout countries -- Germany and France -- will be looking for someone to bail them out. The spending trajectory and the enormous public sectors in most European countries are unchanged features of the landscape. This means more debt and renewed crisis at some future date.