CIO Vantage Point
July 13, 2012 Posted by:
Joe Morgan, CFA
The views expressed in this column are solely those of the author and do not reflect the views of SVB Financial Group, or Silicon Valley Bank, or any of its affiliates.
For those of you old enough to recall this line from SNL (nearly thirty years old, I'm afraid), the first sentence in the linked article will likely bring a chuckle:
"France is ready to cede sovereignty to its European partners…"
Though the country is not in any real fiscal trouble, European Affairs Minister Bernard Cazeneuve felt confident enough to make this statement implying France is ready to report to a council of some sort, run by all 17 members of the euro zone.
As the dominos of Europe continue to totter, indications the group's second largest member is ready to be a follower rather than a leader cannot increase confidence.
So, if there was ever any doubt whether leadership in the euro zone extends beyond Germany, let that doubt now die.
Either the Germans bail out the region and enforce fiscal control, or the zone breaks apart.
My bet is on the latter.
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TFJ: In Other News, France SurrendersJuly 13, 2012 Posted by: Joe Morgan, CFAThe views expressed in this column are solely those of the author and do not reflect the views of SVB Financial Group, or Silicon Valley Bank, or any of its affiliates.
For those of you old enough to recall this line from SNL (nearly thirty years old, I'm afraid), the first sentence in the linked article will likely bring a chuckle:
"France is ready to cede sovereignty to its European partners…"
Though the country is not in any real fiscal trouble, European Affairs Minister Bernard Cazeneuve felt confident enough to make this statement implying France is ready to report to a council of some sort, run by all 17 members of the euro zone.
As the dominos of Europe continue to totter, indications the group's second largest member is ready to be a follower rather than a leader cannot increase confidence.
So, if there was ever any doubt whether leadership in the euro zone extends beyond Germany, let that doubt now die.
Either the Germans bail out the region and enforce fiscal control, or the zone breaks apart.
My bet is on the latter.
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