James Howard Kunstler has a new column on The Great Unwind in Europe:
“Now we get to the really fun part of the global unwind where even money flowing into supposedly safe havens turns, presto change-o, into an evaporation of wealth, and all of the lawyer-lobbyists who ever double-parked on K Street in the sorry history of this frantic era will not avail to contain the demons of their own design.
The world is waiting to re-learn an old lesson: that untruth and reality exist in an adversarial relationship. Sad to say, there isn’t enough legal infrastructure in the world, nor enough time, to pass judgment on all the lies and misrepresentations that burden the current edition of what passes for civilization. This goes especially for money matters, where currencies, certificates, and contracts actually have to represent what they purport to stand for. When those relationships fail, as they have been doing for some years now, everything falls apart.”
It seems to be finally happening in counties like Greece and Spain.
They’ve managed to kick the can down the road for several years now in Europe and America. Obama must be terrified by the possibility of history repeating itself. John McCain declared that the economy was “fundamentally sound” on the same day that Lehman Brothers collapsed in September 2008.
It was the collapse of Lehman Brothers that sunk the McCain campaign and put Obama in the White House. So what happens to Wall Street and the American economy if the euro collapses between June and November?