MILLBURN, N.J. ( Stockpickr) -- There is no doubt that Europe is having its troubles. You can attribute this to a long list of problems that are evident across the pond. Here are several of those problems:
- A central bank that continues to obsess on inflation rather than the dual mandate of the US Federal Reserve which concerns itself with both economic growth and inflation.
- An economic confederation of many countries, called the European Union or EU that for centuries have battled; conquered; and, hated one another. Those cultural and nationalistic biases still exist despite the signing of the Maastricht http://www.eurotreaties.com/maastrichtec.pdf and subsequent Treaties.
- Deep rooted socialism in many countries
- A single currency for some but not all European Union members. This conflicts with the fact that each sovereign nation issues its own debt and has a different set of taxation laws and policies.
- Commercial banks that are undercapitalized