EU: Papering Over The Cracks

The EuroZerozone is in all kinds of trouble now, having staked its whole economy on the ability of the Greeks, Portuguese, Spanish, Italian and Irish to reduce unemployment, public spending and public borrowing under IMF-style conditions.

More ominous still, the US Federal Reserve has had to step in and co-ordinate global central bank co-operation to "prevent the spread of strains to other markets and financial centers." It added that "Central banks will continue to work together closely as needed to address pressures in funding markets."

But as we've seen from the subsequent unabashed self-indulgence amongst bailed-out banks and bankers: the pressure is off once you know that no one will let you fail.

Stay long on riot shields ;-)

Image: The Rival Bill Posters