Investors perceive that Europe’s Debt Crisis is worsening and is not isolated. It may pull the whole currency down with it as well as effect Europe’s politics. This only draws attention to the open dispute between the European Central Bank and the various governments of Europe about what to do with Greece’s growing debts.
All these splashy stories made the Dow fall 138.78 points on Monday. For the month of May the Dow was down 3.4%. The Euro slipped again. It fell below $1.40 on Monday and ended at $140.49 against the dollar. As a result investors fled to the security of U.S. and German bonds.
But ultimately the very security of Germany’s bonds depends upon the wide reach of the euro currency. So it cannot draw in its wings. It must spread them wide. It is only a tribute to the German people that after the immolation of World War II they are, phoenix-like, rising from their ashes and trying again and again until they get it right. Hopefully this time they can prove their mettle in dealing with the the Euro Zone debt crisis.
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