Tuesday, January 31, 2012
President Sarkozy was all smiles after yesterday's EU summit in Brussels, though it's hard to say why. Angela Merkel's victory was complete, and virtually nothing remained of France's at best inaudible peep concerning the need for measures to support growth. Meanwhile, major European banks are preparing to borrow close to 1 trillion euros more from the ECB under its LTRO program. Euroland's leaders' promise to sin no more has done nothing to alleviate the burden of outstanding debt, private as well as public. As predicted by nearly everyone except the political leaders making the decisions, growth has slowed in lockstep with austerity.