FATAL FISCAL POLICIES?: Banks See New Funding Crunch - WSJ.com
What keeps getting skipped over or obfuscated is the dreadful business climate in Europe.
Taxes are too high. Unions have unrealistic demands. Labor policies and laws make hiring the last thing any business wants to do.
So, government keeps making up for this by borrowing money.
If one thinks of government as a farmer who keeps borrowing more and more on his land, eventually the banker (read: taxpayers, banks and the rest of us) realize that no matter how high taxes get, the farmer will never have enough funds to pay the loans back. Is this where Europe is now?
(Certainly everyone except the Greeks thinks that Greece is there.)
Saturday, May 8, 2010
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