We're seeing the beginnings of a global economic seizure already. Germany is on the cusp of, if not already in a recession. Italy can't issue bonds without paying yields normally reserved for third world nations. Just today Italian bond yields hit crisis levels rising above 7%. None of these things can be stopped without someone stepping in and laying out a plan of action for the European Union.
Without a plan, even a flawed plan, Europe will simply close for business on an International basis. If and when that happens, the whole world will freeze right along with it. The deeper we go into this disruption, the lower corporate earnings throughout the world will be. The lower the profits, the fewer the jobs, until no company on earth can predict with any certainty what their business will look like tomorrow.
The threat of such an outcome is very real and extremely scary. Tens of millions of jobs are at stake. The fate of the financial world as we know it hangs in the balance, and traders are going to bed every night wondering if the head of France will still be in power in the morning.
It's ugly and it's real. Not all fears are irrational. Sometimes there's a monster under the bed and a boogeyman in the closet. This is one of those times. |
发表于 2011-11-10 00:00
|