The Lehmann
Letter (SM)
The casual
observer of European events is tempted to throw up his or her hands in despair
and conclude: THEY’RE TOAST!
Not so fast.
Don’t be dragged into the details. Keep the big picture in focus. Every crisis has
brought new progress. New challenges have brought new solutions.
You needn’t
be thoroughly familiar with current events in order to see history, as well as
progress, unfolding. A stronger Europe is being forged before our eyes.
See, for
instance, this article that appeared in July 3’s New York Times.
“Europe’s Banking Chief Wields New Power in Crisis”
The article’s
opening paragraphs said:
“The
spotlight in the European debt
crisis has now shifted decisively toward
the influential leader of the European Central Bank, Mario Draghi, who emerged from the recent summit meeting in Brussels with new powers and stronger backing to address the
Continent’s financial woes.
“Political leaders took
significant strides toward making the central bank more like the United States
Federal Reserve, giving it authority to oversee the euro zone’s largest banks
and, once that new regulator is in place as soon as the end of this year, a
likely role in rescuing Spanish banks with capital directly from the European
rescue funds.
“Many of the longer-run
plans under discussion, like European deposit insurance, would mean shifting
further responsibilities toward the bank, arguably giving Mr. Draghi the most
influential executive powers in Europe.”
These are just pieces of
the final puzzle. But they are falling into place.
(To be fully
informed visit http://www.beyourowneconomist.com/)
© 2012
Michael B. Lehmann
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