Europe Works on its Issues

We have talked little about the European situation over the past few months other than the fact that long-term they are going towards a solution that will preserve the Euro and acknowledge balance sheet write-downs for both banks and countries to adjust for the downward changes in asset prices that have occurred over the past four years.  I applaud them for facing up to the issues and we all know that this will take time, this is a big world problem also.  It is amusing to me to watch the market gyrations that the markets have seen as traders and investors seem to focus on issues 15 minutes in front of them rather than the long-term five year focus that one needs here. 

What one needs to realize is that this country will have to face these type of issues down the road.  Too Big To Fail will not be an operable function in the US when the US finally starts to recognize its sloppy balance sheets in the personal and financial sectors.  Things will get cleaned out here eventually, you don’t have 40 years of excess and just have a quiet landing.  In the meantime we have a glum population and fat corporations, this will not last, but for the moment we are going to divert our attention to the coming election year and the attempts to spread bliss and inaction from both sides of the political spectrum. 

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