From all the news flow out there it appears to me that we are nearing a so-called "inflection" point in the European debt crisis. After a summer and early fall of spinning wheels to no end, European leaders are faced with a stark choice: finally do something serious, or watch the entire euro structure fall apart with unimaginable consequence for the European Union as a whole.
There is a eurozone summit meeting this weekend, to be quickly followed by another one three days later on Wednesday. If the Franco-German axis (no, I do not use the term lightly) does not reach a mutually satisfactory agreement on Greece, expanding the EFSF and bank recapitalization then the inflection will point straight down.
The Battle for Europe is, tragically, being fought by generals who are well out of their depth. They created a continent awash in funny money and a population that for decades felt entitled to their comfortable - albeit debt financed - lifestyle. Oh yes, even the holier than thou Germans; I mean, how else could those "other" Europeans afford to buy millions of BMWs, Airbuses and Miele washers exported by Germany if not through debt? It's not as if Kalamata olives or jamon Serrano have much value-added, after all. And vacations in Terremolinos, Rhodes or Costa Brava are on perennial all-inclusive, cheapest-is-best offer...
Let's Hope It Doesn't Come To This, Again
Europe desperately needs a whole new cadre of strong and decisive leaders who will turn things around. Maybe the current ones will see the light and pave the way for them by gracefully bowing out, after taking whatever steps are necessary right now to forestall implosion. But, I'm not holding my breath..