An emergency session of euro-area finance chiefs in Brussels yesterday failed to break a deadlock on how to enroll investors in a second bailout without triggering a default, casting doubt on funds due from the International Monetary Fund next month.
They talk. They meet. They talk. And they meet again. But nothing is being done.
Politicians are only able to give money away to win votes. They cannot make the tough decisions, however, because there are too many vested interests.
I have said for years that the European Union cannot work. Why? Productivity differentials between countries are too wide. Money will flow to the most productive countries (Northern Europe) and suck away wealth from the unproductive ones.
This is exactly what is happening. I have been there. I lived there. I know how the Italians, Greeks, and Spaniards think. Their culture. Their philosphy of life. But they cannot compete against the Northern European. They are too dfferent.
George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
2009 Market Timer of the Year by Timer Digest
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