Monday, December 13, 2010

Poor Old Europe

The financial system in Europe continues to melt down in agonizing slow motion, with Greece taking the lead and Ireland in second place. Portugal, Italy, and Spain cannot be far behind.

A discussion of all this in the London Telegraph has the gloomy title "The eurozone is in bad need of an undertaker." It's clear that Ambrose Evans-Pritchard, who authored the article, believes the euro was a mistake and the U.K. was smart to keep the pound.

The euro zone has been like a family trying to remain solvent while letting its irresponsible adult children have their own credit cards. The parents, Germany and France, are now looking at the bills run up by the kids, Portugal, Italy, Ireland, Greece, and Spain, and trying to decide whether to let them fall into bankruptcy or to bail them out.

Both options are bad, the question is which is the lesser evil.