Europe’s problem and our problem

Economics columnist Robert J. Samuelson gives a good explanation of what’s going on in the European economy:

Europe’s banking crisis — and “crisis” is used advisedly — tells us how much and how little has changed since the onset of global financial turmoil in September 2008. Then, people worried about the viability of major American banks, loaded with “toxic” mortgage-backed securities whose value was difficult to determine. Now, people worry about major European banks, loaded with government (a.k.a. “sovereign”) bonds whose value is difficult to determine. We are flirting with another financial crisis not unlike the post-Lehman Brothers panic.

So American financial institutions were pulled down because of bad loans on houses.  European institutions are on the verge of being pulled down because of bad loans on whole countries.

Read the column for the details:   Is another financial crisis looming in Europe? – The Washington Post.

About Gene Veith

Professor of Literature at Patrick Henry College, the Director of the Cranach Institute at Concordia Theological Seminary, a columnist for World Magazine and TableTalk, and the author of 18 books on different facets of Christianity & Culture.

  • http://www.delvinginto.com Drewe

    And so the world is pulled into another crisis because we all spend more than we earn, then rely on inflation to pull us out.

    And the lower and middle classes have to pay to bail out the corporations, so the rich and the government can protect their ‘investment’.

    I, for one, can’t wait for this world to be gone and to live in God’s economy!

  • http://www.delvinginto.com Drewe

    And so the world is pulled into another crisis because we all spend more than we earn, then rely on inflation to pull us out.

    And the lower and middle classes have to pay to bail out the corporations, so the rich and the government can protect their ‘investment’.

    I, for one, can’t wait for this world to be gone and to live in God’s economy!

  • John C

    It’s gunna be a long wait Drew. In the meantime, why don’t you make yourself useful.

  • John C

    It’s gunna be a long wait Drew. In the meantime, why don’t you make yourself useful.

  • Patrick Kyle

    Keynseian policy will be seen for what it is: a scam. To quote a prominent blogger “You can’t drink yourself sober.”

  • Patrick Kyle

    Keynseian policy will be seen for what it is: a scam. To quote a prominent blogger “You can’t drink yourself sober.”

  • DonS

    At some point, perhaps we’ll realize that there is virtue in spending no more than you receive.

  • DonS

    At some point, perhaps we’ll realize that there is virtue in spending no more than you receive.

  • http://www.delvinginto.com Drewe

    John@2. I’m interested what you mean – just because I see a world full of sin and wish it would be over, doesn’t mean I am hiding under my bed praying for the end of the world….

  • http://www.delvinginto.com Drewe

    John@2. I’m interested what you mean – just because I see a world full of sin and wish it would be over, doesn’t mean I am hiding under my bed praying for the end of the world….

  • John C

    I’m relieved you have not taken to your bed Drew but I would be wary of looking forward to God’s economy. He may be a Republican.

  • John C

    I’m relieved you have not taken to your bed Drew but I would be wary of looking forward to God’s economy. He may be a Republican.

  • Cincinnatus

    John C is a troll. Disregard.

    Anyway, yeah. Europe is in a lose-lose situation, which means we are too. But out of these choices for inevitable defeat, I would like to see an end of the European Union.

  • Cincinnatus

    John C is a troll. Disregard.

    Anyway, yeah. Europe is in a lose-lose situation, which means we are too. But out of these choices for inevitable defeat, I would like to see an end of the European Union.

  • John C

    John C is a troll.
    The accusation is inevitable when a secular humanist lingers too long on a rightwing Christian blog. There’s probably an element of truth to the charge but I have enjoyed my time here and I have learnt alot.
    God Bless

  • John C

    John C is a troll.
    The accusation is inevitable when a secular humanist lingers too long on a rightwing Christian blog. There’s probably an element of truth to the charge but I have enjoyed my time here and I have learnt alot.
    God Bless


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