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what do you think is happening here?
Put simply, the so called PIIGS (Portugal, Ireland, Italy, Greece, Spain) have all been quite irresponsible with public debt, which has lead to a shit storm in Greece and looming shit storms in Ireland, Portugal and Spain. Greece basically had to cook their own books due to massive mismanagement and the global financial crisis that started here in the US was the straw (1100 lb. straw) that broke the camel's back. They're getting loans and cutting spending like crazy, but it's lead investors to realize that bonds from other governments could be shit.
what do you think it means for the european union? for england? for the international capital flow systems?
This means the EU has to grow up. The Euro was a massive gamble that still could pay off, but they're going to need to take continent-wide steps to stabilize the markets or the whole thing could collapse. International finance is a deck of cards that will fall eventually, but there are steps that can be taken to minimize the damage.
what you do you see as happening?
The EU has to start legislating banking rules as a union. I called this years ago, kinda, when I said that the EU was going to eventually have to behave as one state the way that the United States act. Germany can't carry the load of the entire continent on their backs and loaning out money is really only a poor, temporary solution. They need to pass government debt legislation that's union-wide. They'd also be very smart to break away from the United States and China as much as possible, because the US will collapse some time in the next maybe 2 decades, and China will follow.
what do you think should happen?
The largest international financial investigations in history, followed by public trials and severe sentencing. In the future, when people are tempted to take massive risks and cook books, I want them to think back to 2011 and shudder with fear.
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