Tuesday, May 11, 2010

The Euro's rescue... NOT

Confidence in the ability of nations to get their debts under control is not high. Yesterday’s big move in the stock market was a dead cat bounce. Greece is still broke. The EU is now on the hook for another trillion or so dollars. These are facts that can’t be papered over. And the markets are taking notice.

As I write gold is up more than $20 per oz.


David Gould said...

The restoration of the Orthodox Christian monarchy by returning HM the King of the Hellenes to the throne and doing away with the illegitimate and disaster prone Greek republic would be a great start to cleaning up Greece's act.

John (Ad Orientem) said...

I am inclined to agree with you. But a monarchy is not a guarantee of fiscal prudence. History is replete with royal spendthrifts. And any restored king would still have to face most of the same problems the Republic faces.