Wednesday, October 8, 2014

Europe Slips Into The Abyss

The data released on German manufacturing just adds to the gloom in the Eurozone.  No growth looks like it is turning into negative growth.  So much for aggressive actions by the European Central Bank over the past six years.

The answer to the horrendous debt problems of Greece, Italy, Spain, and France was more debt.  The politicians resisted dealing with the root cause of the problem -- the absurd, anti-free market regulatory and labor law environment prevalent almost everywhere in Europe.

Instead, the politicians, including conservative Angela Merkel, looked for big government solutions with dramatically higher levels of sovereign debt.  It's not working.  The US can't be far behind.

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