News. May 14 (Bloomberg) -- Former Federal Reserve Chairman Paul Volcker said he’s concerned that the euro area may break up after the Greek fiscal crisis that sparked an unprecedented bailout by the region’s members.
My point. I said it (and wrote about) as soon as the EU was created that it could not last. If you lived in Europe as long as I did you know that productivity differentials between European countries is so huge that some countries are bound to be crushed by the most productive ones.
This is exactly what is happening. Why invest in Spain or Greece or Portugal when you can have higher returns in the more efficient northern European countries? A country cannot survive of tourism alone.
Many years ago Milton Friedman said it very clearly that the European experiment was bound to fail. And it has failed.
George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked Top Market Timer in 2009 and 2010 by Timer Digest
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