Daily Archives: September 12, 2011

The Euro (and Europe) is on the brink

There’s a good article here (Germany moves fast to ease ECB tension – The Globe and Mail) highlighting the dramatic story unfolding in European finance. Nothing comes across as straightforward. Juergen Stark was likely pushed or felt compelled to resign in order for the ECB to push forward with shoring up some of the PIIGS (Portugal, Italy, Ireland, Greece and Spain). However, it also looks like one of those countries, Greece, is going to get pushed out of the Euro. The trick now will be if all this can calm down the bond markets and allow Spain and even Italy to recover. Otherwise it could be a catastrophe that damages the economies of a number of European countries and wipes out the the financial system there as it now exists.