all

Skepticism Growing Over EU Bailout, Stocks Down


Thursday, May 13th, 2010

Stocks, commodities and financials dropped today as investors take in what the consequences may be concerning the bailout offered by the EU for socialist countries spending more than they can take in.

There is also growing skepticism on whether the almost $1 trillion bailout will do much to stop the debt crisis, when the entitlement and welfare culture of these countries aren't being dealt with.

While there are some steps being taken to cut back, they don't seem to be even close to enough, and that means once the money is spent, the same underlying problem is still there, and the bailout will only temporarily postpone what needs to be done, which is change to free market economics and stop paying people propped up wages and benefits which can't be sustained or supported by the dwindling number of productive people residing in the countries.

But with Europe it's worse than that, as people of different countries are now being asked to flip the bill for these deadbeats, who have no will or desire to change, and who think they are owed it by their economic worldview, which is to take from others and redistribute to them.

Until that is dealt with strongly and purposefully, this will rear its ugly head again and again, and it's only going to get worse over time when these countries see they can get away with it.

Jim Rogers was right, Greece should have been allowed to default in order to send the clear message things must change and they take the euro seriously.

Now that the bailout has been approved, that's all been thrown aside in order to give temporary reprieve with long-term, negative consequences.



Article by Gary B

The views expressed are the subjective opinion of the article's author and not of FinancialAdvisory.com



Tags: bailout , eu , euro , sovereign debt crisis