Welcome to Capital Account. Germany and Greece faced off today in the Eurocup 2012 with German newspapers pushing headlines like “bye Greeks, we can’t save you today.” But can anyone in Europe save the monetary union from itself? Mario Monti, Italy’s technocrat prime minister, says there is only one week left to do it, but looking back at older headlines, it appears there have been many times Europe only had “one week left” or “ten days left.” What’s up with that?
And while we are on the topic of déjà vu…more ratings downgrades were issued yesterday. This time it was Moody’s downgrading 15 of the largest global banks, and it’s become a bit like white noise. We get it; worries are widespread. So the question is: where is the safest place to hide from the tale risk of a worst-case scenario? Will we see another credit crunch, or is the best case just more “muddling through?”
And last but not least, Friday is viewer feedback day, when Lauren answers some of your comments and tweets. From campaign contributions to rent seekers and Voltron, Lauren responds to you!