Earlier today, news leaked that German Chancellor Angela Merkel made a comment that Europe will not have shared liability “as long as she lives.” ZING! The markets were buzzing with the newfound bravado of Germany’s leader. However, everyone soon realized that this quote was from someone who overheard her say it to a constituent at a political party event. Not exactly the credible source that you would want to quote when it comes to economic policy. Nonetheless, the comment wasn’t really that far adrift from what she has been saying all along. Germany does not want to give the struggling nations of the Eurozone money and then watch them burn it up recklessly. They want responsible governance that will give them more confidence in giving that loan. In other words, they are insisting on austerity; and until the countries with their collective hands out agree to Germany’s stipulations, Ms. Merkel and her cohorts will continue to deny the assistance required.
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