Is there any hope for Europe?

[Beet]

Is there any hope that the euro zone will be able to resolve its problems? Leaving aside the problems in Ireland's real estate market, it seems to me that Ireland and Greece have enacted sharp austerity budgets and yet have not been rewarded. There are a couple of issues here
1) - Why can't these countries just bring their budgets into primary balance? Would involve going all out with spending cuts, but with a balanced budget, no bond trader could object.
2) - Why can't the ECB just announce a big bond buying program like the US Fed? Wolfgang Schaubel was one of the biggest critics of the Fed, but he's also the one who predicted on November 7 that Ireland and Greece would be just fine... that prediction isn't really coming true. If the ECB were to announce, say, a 500 billion euro bond buy, that would calm things up pretty fast.

[Gustaf]

Predictions of doom and gloom tend to be overreactions. But Europe sucks. More specifically, Southern Europe sucks. Ireland at least has competitiveness once they dig their way out of this hole. Greece and Italy...

[ag]

I think, the hope is pretty good ) At least, they don't have Ron Paul to bother about )))

[Gustaf]

I think, the hope is pretty good ) At least, they don't have Ron Paul to bother about )))

We have Sarkozy and Berlusconi. Not to mention the ECB...

[opebo]

Yes.  However, the hope is politically inaccessible at the moment.  In the US, the solution to all our problems (raising taxes on the rich) isn't allowed.  In Europe the solution to all their problems (breaking up the currency union) is beyond the pale as well.

[Swedish Rainbow Capitalist Cheese]

There is plenty of hope for Europe, in the long run probably more hope than for the USA.

Is there hope for the Euro... let's hope not.

[RIP Robert H Bork]

There is plenty of hope for Europe, in the long run probably more hope than for the USA.

Is there hope for the Euro... let's hope not.

^^^^

[Beet]

If the euro zone breaks apart, Europe will really melt down. Not just the peripherals but also Germany. It will be the kind of economic damage that you don't recover from, in terms of collapse of reputation, set the continent back 60 years. I think Sam predicted this back in early 2009.

[k-onmmunist]

There is plenty of hope for Europe, in the long run probably more hope than for the USA.

Is there hope for the Euro... let's hope not.

^^^^

[memphis]

Europe as a singular entity? Sure. They've invested too much in unification to all go their own way now.

[Јas]

1) - Why can't these countries just bring their budgets into primary balance? Would involve going all out with spending cuts, but with a balanced budget, no bond trader could object.

Indeed they could and would. The budget deficit is not the really significant problem (well for Greece it may be, but not Ireland).

[Beet]

1) - Why can't these countries just bring their budgets into primary balance? Would involve going all out with spending cuts, but with a balanced budget, no bond trader could object.

Indeed they could and would. The budget deficit is not the really significant problem (well for Greece it may be, but not Ireland).

Oh, I know. That question wasn't really directed at Ireland.