Europe watch: More reasons to watch the other guys than the pageantry in London
There are many reasons the American economy seems to be as skittish as the proverbial long-tailed cat in a room full of rocking chairs -- and not all of them center right here at home.
The truth is that many investors -- and therefore, the markets -- are nervous about the European Union and its continuing problems with debt, devalued currency and the tough austerity measures that everyone seems to say are needed, but that crowds continue to protest.
Some members are in more trouble than others -- with a couple teetering on real trouble.
But that is not the only reason to keep your eye on what is going on across the pond.
This could be a real glimpse into what can happen when you let government take over, and spending seems to have no limit.
The European model really has not worked -- at least not the one where everybody takes something out and no one is really required to manage the budget.
And that comes with out-of-control social programs and what can only be seen as restrictive business investment.
If the citizens of the U.S. want to see what will happen if this government continues to amass debt and to limit growth, all they have to do is look to Europe.
The bottom line is that government budgets have to work like personal budgets. It would be nice to give your kids everything they want, when they want it, but you can't if your paycheck does not cover the costs.
Let that get out of control and you end up not being able to pay the mortgage or the water bill.
And that is the reality Europeans and some others are now facing.
We should consider it a warning.
Published in Editorials on June 11, 2012 10:40 AM