Tuesday, May 11, 2010

Euro Drops after Euphoria Wanes Over EU Rescue Commitment

Euro continues on its downward plunge as the temporary euphoria over the almost $1 trillion bailout loan package by the European Union for socialist countries in the region who take and redistribute other people's money (which they have now run out of) at a rate they can't afford, is now over, and the repercussions of the spending is starting to be understood by those stepping back and looking at another misguided attempt to save those who refuse to manage their financial affairs in a responsible manner.

Many are realizing that even $1 trillion isn't near enough to handle the situation, and all it's doing is postponing the inevitable, as it's going to be difficult to force these countries to turn from their outrageous spending and turn to a more market-oriented economy, like Germany generally has.

The problem with Germany is it took them about 15 years to make the transition, making the $1 trillion a tiny amount when taking into account several countries which will probably have to take as long as Germany to implement these changes, and $1 trillion won't be anywhere near enough to extend the time needed to do what needs to be done.

These people in the countries in trouble have been weaned on entitlement programs where they actually think they should be taken care of by the state, which is the underlying cause of the debacle Europe is facing, as they simply can't afford the wages and perks their governments have promised them.

It could even last longer if people rise up and violently protest, destroying a lot of their countries because they're going to throw tantrums over being cut off and having to start taking care of themselves more.

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