CURRENCY PROBLEMS

The sovereign debt problems in Europe appeared to be resolved, however, the painful austerity measures will not only weaken the European economy, but do nothing to resolve the actual issue at hand. IT IS THE CURRENCY STUPID!!!

In addition, the potential for contagion is on the rise in Portugal and Spain. They  will likely be forced into similarly painful austerity measures that further  will weaken the region and will increase the risk of sovereign debt and a deepening recession in Europe.

Our opinion is that the precedent set by the bailout is terrible and will impose severe strains on the citizens of Europe.

Moral hazard all over again !!!