This research note from DeutscheBank Research points out the obvious, that there is nothing timely the EU can do to create a fiscal and banking union among its members. Such union is what the pundits have been saying is needed to really “solve” their current crisis. Let’s see, that leaves … money printing.
Euro area: [...]
There is a lot of chatter about the eurozone, Greece, Spain, Germany, and the European Central Bank (ECB). And rightly so since we appear to be reaching a critical stage there. Some have raised the point that there is nothing the ECB can do to solve their problems. That is correct [...]
“Working at my desk today was somewhat surreal. Global risk markets were closing out a dreadful week. Newswires were full of disconcerting articles – J.P. Morgan, Greece, Spain, Italy, China, etc. Meanwhile, CNBC was in the midst of blanket coverage of the Facebook initial public offering. Mark Zuckerberg rang the bell to open NASDAQ [...]