Greece and the 2010 US elections

May 7, 2010

The  290k increase in jobs is great news for the WH and congressional Democrats. The rising unemployment rate, from 9.7% to 9.9%, is not. Yes, it reflect workers moving back into the workforce, but it is still a lousy headline number. So, too, the rise in the broad U-6 unemployment number to 17.1%. The good news also gets drowned out by the big drop in the stock market and trouble with EU sovereign debt. Even if Greece’s problems do not metastasize, they still provide unsettling headlines for U.S. voters. Like something is still not right in the world. Then, of course, you still have the moribund U.S. housing market and all that evaporated net wealth. Stronger growth may be enough to keep Republicans from capturing the House and Senate, but big gains nonetheless.


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Using the word “metastasize” implies that there is something wrong with Greece that could spread to other countries.

In fact, all of those other countries have internal financial problems of their own. If Greece was not a member of the European Union, the Euro would still be in serious trouble.

It would just be a different country grabbing all the headlines.

Posted by breezinthru | Report as abusive

The Euro would be much more tenable if it was the currency of only core Europe. The situation is not terribly different than many other European experiments with empire — too much, too fast.

In this case, I predict that rather than the weaker participants leaving the Eurozone, the stronger participants will. This is a case of Spain and Portugal needing the Euro more than Germany and Finland.

While this is all very easy to talk about, the implementation will be frightening.

Posted by JCJ | Report as abusive