Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 3
Toni

I am completely in your camp as far as Europe goes. No one seems to want to admit that the banks have a solvency problem, not a liquidity one.

European citizens are also going to have to face the harsh truth that the magical days of unlimited spending on someone else's credit card are over.

Germany (along with much of the "safe" Northern Europe) will have to realize that exports are there to pay for imports, not to build up massive foreign reserves (China is in the boat, too).

The banks need cash infusions, which means Germany is going to have to get over its fear of hyperinflation and let the ECB print.

These are major psychological hurdles and adjustments to national mentality that will only be made under the massive pressure of total collapse.

Sadly, the same can be said for the US and its issues (which haven't gone away - they're just hiding behind Europe's skirts right now).

Back to the issue of China's rising militancy, an interesting article out of India:
http://timesofindia.indiatimes.com/world/china/US-base-Oz-ma...
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.