Europe remains the focus of much of the business news. In the NY Times, German economist Hans-Werner Sinn offers an op-ed on why Berline is balking at a bailout. His basic argument is that the kind of risk-sharing demanded by some pundits and politicians is only possible if the euro-zone were actually a nation with a contitution and a common legal superstructure. Meanwhile, Gerald O'Driscoll opines in the WSJ that the euro will fail. He cites Milton Friedman who predicted the euro would fail within ten years. It has lasted longer than that, but O'Driscoll thinks failure is almost certain. He concludes his column with the idea that the EU should have adopted political union before creating the euro and not the other way around. Another column offers support for Merkel's approach, arguing the lack of leadership is in the debtor nations. The lead article in the WSJ is on the spreading threat in Europe over the euro crisis. Another article focuses on Italy.
O'Driscoll referred to the time as a crisis, meaning the original idea of the Greek work that underlies the English word--a turning point. Either the currency will fail or it will recover by the euro-zone adopting more fiscal and political integration. While O'Driscoll thinks it will fail, I still think there is a good chance the greater political integration will occur.