This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Euro Cup, Euro Crisis

NEW YORK ( TheStreet) -- I'm not one to draw metaphysical parallels between sports and sociopolitical events. But the latest results of the European Cup are just too surreal. Greece is out (and Portugal can be safely written off), and Germany, Spain and Italy fight it out . . . seriously?

Poor Germans, they seem destined to fight the rest of Europe, and occasionally the world.

German Chancellor Angela Merkel

As I expected the day of Spanish bank bailout, Greeks will ask for two years' extension in meeting the bailout conditions. Germans, for the nth time, refused.

It'd be a Black Swan if the European Union Summit on Thursday could produce anything meaningful; the infinitesimal chance has just been further diminished (ok, "higher order infinitesimal" for you math types) by the fact that the new Greek prime minister, Georgios Samaras, conveniently had a surgery that prevents him from attending, as noted in this article from Reuters. I don't expect the Greek delegate, led by the new foreign minister and the outgoing finance minister, to accomplish anything except timidly muttering the request and then quickly proceeding to get beaten up.

But Greece is so before semi-final; the market has moved on already. The 100-billion-euro rescue for Spanish banks lasted a few hours before the market saw through the utter meaninglessness of it. Now that Spanish officials have realized the market has realized the problem, they'll ask for not putting the bank rescue on the government books, which would put it on the European Financial Stability Facility's books, which would open a whole new can of political and credit-rating worms.

In the meanwhile, Italy's Monti was quoted in the Wall Street Examiner as saying Italy doesn't need a bailout, which of course means, just like Spain, they'll need one very soon.

The eurozone leaders just can't do anything right, can they? The problem, of course, is not that they are incompetent; I'm sure they're all very capable individuals. It's that the system is set up for failure -- no authority, no accountability, no responsibility.

And when it eventually fails, it'll go down in history textbooks as a purely manmade disaster. The solution has been there all along but they choose not to take it: come back to reality and break up the Euro.

Even if, against great odds, they announce some sort of banking or fiscal or even political union, such a manufactured social entity would not last unless some degree of homogeneity is achieved through a few generations' dictatorial rule. Germany, France, Northern Italy and southern Europe have had centuries of persistently different lifestyles, outlooks on life and levels of productivity. Unless and until they bridge such deep-rooted cultural gaps, a political union will not last, at least not within the democracy framework.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
EWI $12.14 0.00%
EWP $27.44 0.00%
GLD $122.07 0.00%
SPY $204.97 0.00%
UUP $24.29 0.00%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs