The bottom line

European governments can no longer count on their financing costs remaining similar to those of Germany, the region’s strongest economy, simply because of their participation in the single currency, he [Draghi, new chair of the ECB]said.

I have also wrote that the reason countries wanted to get in the EU was because the low borrowing costs so that they could borrow and spend without creating the wealth to repay the debt.

Europe has more chances to break than really unify. Every country wants to run its own show, in a nationalistic way.

Good luck!

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
2009 Market Timer of the Year by Timer Digest

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