The crisis is so perilous for Europe that the leaders of the 16 countries that use the euro worked into the early morning Saturday on a proposal to create a so-called stabilization mechanism intended to reassure the markets. On Sunday, finance ministers from all 27 European Union states are expected to gather in Brussels to discuss and possibly approve the proposal.Will the mechanism get at the root of the problem? Put aside boom-n-bust, rating agencies, financial markets, et al, the real problem which created our current embroglio is still firmly in place, statism and those who adhere to its principles. The hack political cycle of governmental promising and spending, followed by governmental spending and promising, capped off by extra doses of governmental promising/spending and governmetal spending/promising, has sent Europe tumbling into the economic abyss. Right now it just feels like your flying, wait until the landing.
The mechanism would probably be a way for the states, and possibly the European Central Bank, to guarantee loans taken out by the European Commission, the bloc’s executive body, to support ailing economies. European leaders including the French president, Nicolas Sarkozy, said Saturday morning that the union should be ready to activate the mechanism by Monday morning if needed.
Of course, those of us banshees who have been warning of the consequences of this kind of governmental behaviour for years should not rest easily on our "shrill europhobe" sobriquet. Afterall, the same people (statists) and mindset (statism) which caused the problem, are busy setting out to "fix" the problem. In other words, our betters are answering the call to do something. Precisly what go us here in the first place.
Anyone know the odds on what the outcome of the latest "fix" will be?