Monday, May 31, 2010

First Greece Now Spain. Eastern Europe Better?

It may be a holiday in the US, but European markets are open. Euro steadies after Spain downgrade, stocks flat | Reuters The Euro is hovering just above a 4-year low of $1.2282 per Euro. (The 4-year low was hit in April.)
The European single currency is on track for a hefty 7.7 percent drop against the dollar in May on nagging worries that Greece's debt crisis will spread to other countries in the euro zone, stunting the global economic recovery.
Which explains why Washington's continuing effort to destroy the dollar isn't working. Yet. I doubt that we can do what the Greeks and Spaniards did without ending up in the same place - bankruptcy.

As Western Europe starts paying the price for socialist fantasies (er, policies), the Czechs take a right turn. UPDATE 2-Czech centre-right parties start coalition talks | Reuters
Czech centre-right parties began talks on forming an austerity-minded coalition government on Sunday after their surprisingly decisive election victory over leftists who advocated higher welfare spending.

Three centre-right parties, led by the Civic Democrats under new leader Petr Necas, won 118 seats in the 200-seat lower house in Saturday's parliamentary vote, defying expectations for a tight result.
But then they lived under the heel of a communist dictator for a long time. Maybe they haven't forgotten that.

That and the right promised to ensure there was no Greek-style crisis. (The Czech government debt amounts to 35 percent of GDP, better than the EU average and a whole lot better than Greece.)

Don't even ask where US government debt sits; it will make you cry.

1 comment:

smacklin said...

"surprisingly decisive election victory"

Is that equivalent to "unexpected" bad economic news in the U.S.