A Short Update On Europe

I mentioned earlier that on 7 September, a German court will rule whether the bailout for the peripheral countries is legal.  While the court is not expected to rule against that, we have other things in Germany to worry about.  Namely, Chancellor Angela Merkel is losing support.

The latest blow came from the latest defeat from a regional election, as Chancellor Merkel’s Christian Democratic Union got less support, and Merkel’s coalition partner Free Democrats became the biggest loser according to Reuters.  It is the latest manifestation within Germany on the bailout of Greece and other peripheral countries, as the Germans are not happy with helping out those who seem to be irresponsible, feckless, and lied.  So not surprisingly, we are not only facing the probability of a outright default of Greece, we are also seeing the politics in Germany playing out which may potentially threaten Euro and/or Angela Merkel.

Meanwhile, I would also want to point to an article at the Street Light, which points out there has been some significant flow of money from the European banking system into the US banking system, as if the European banking system itself were losing confidence in itself as the debt crisis deepens…

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About Zarathustra

Zarathustra: Founder and Managing Editor of Also sprach Analyst. Once an analyst, now an investor and entrepreneur. Based in Hong Kong, but Londoner at heart.