Daily Capital

End Game Coming For European Debt Deal

The clock is ticking. Germany continues to resist a greater European Central Bank role while promoting stronger fiscal responsibility. It pushes for change in the name of greater EU unity, but unity means stronger nations must be willing to help troubled nations when the need arises. None of the proposed legislation in Europe provides a short-term solution to the current debt crisis – that part will have to come from the ECB. The longer it remains on the sidelines the greater the damage.

The ECB Fear Factor

Panic is beginning to overwhelm the eurozone. Italy and Spain are caught in the maelstrom. Belgium is slipping into the danger zone. As France is dragged down, the widening gap between its bond yields and Germany’s is severely testing the political partnership that has driven six decades of European integration. Even strong swimmers such as Finland and the Netherlands are straining against the undertow. Banks are struggling to stay afloat – their capital providing little buoyancy as funds drain away – while businesses that rely on credit are in trouble, too. All signs point to a eurozone recession.

Read the rest on Project Syndicate.

Want a clear view of your retirement?

The content contained in this blog post is intended for general informational purposes only and is not meant to constitute legal, tax, accounting or investment advice. You should consult a qualified legal or tax professional regarding your specific situation. Keep in mind that investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money.

Any reference to the advisory services refers to Personal Capital Advisors Corporation, a subsidiary of Personal Capital. Personal Capital Advisors Corporation is an investment adviser registered with the Securities and Exchange Commission (SEC). Registration does not imply a certain level of skill or training nor does it imply endorsement by the SEC.

We at Personal Capital have one goal in mind: to build a better money management experience for consumers. That’s why we’re blending cutting edge technology with objective financial advice. We believe this is the best way to empower individuals and their money. Subscribe to our blog and join our empowered financial community.

Retirement news & tips straight to your inbox.

Must be a valid email address
Icon Close

To learn what personal information Personal Capital collects, please see our privacy policy for details.