Wednesday, May 12, 2010
So, the UK has a new prime minister, Europe has a new and huge bailout fund, and I am blogging from a cafe in Paris: all firsts. The euro seems to have stopped plummeting for the moment, along with the markets. In the not even very long run, however, the financial crisis is going to turn political, and I think the outcome(s) is(are) very difficult to foresee. Krugman and many others see an eventual Greek exit from the euro as the only way out, but even such a drastic move may not alleviate the problem. Normally pessimistic, I am even moreso today, and the government of Cameron and Clegg in Britain doesn't promise much; I would be surprised if such a coalition contre nature lasts a year. But the coffee is good, and I.ve got to run. Patience. I'll be back to normal blogging soon. Meanwhile, read yesterday's Le Monde for an interesting article on Sarkozy's style and its ultimate failure.