Wednesday, May 16, 2012

Turbulence in Europe

Sigh. It's risk-on again in Europe, as Greeks pull their money out of local banks. It's not a full-scale bank run yet, but the situation is deteriorating.

G told me this morning she's fed up with the Europeans and wish they'd sort themselves out. We have been thinking of going to Italy or Spain on vacation later this summer, but have held off. There is too much risk of public sector strikes and transportation disruptions. It wouldn't be much fun to have a holiday spoiled by an air traffic controllers' strike.

Spanish and Italian bond yields are still climbing, and the political appetite for austerity is fading. The European political class seems to be running out of options.




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