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Weekly Wrap: The EU's latest plan
European Union leaders met in Brussels to write up a new agreement to try and save the euro. Markets seem pleased.
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A conversation with the Wall Street Journal's Sudeep Reddy and CNBC's John Carney about this week on Wall Street and beyond.
On why the markets seemed to like the eurozone's new deal:
John Carney: It showed that the Europeans had finally been able to reach an agreement. Remember we've had all this back-and-forth rumors everyday of Angela Merkel is going to do this, and Nicolas Sarkozy is going to do that, and they agree -- oh no, they don't agree. Having everybody actually say, 'OK here is a plan and we're all in agreement with it' is a lot of progress.
How the Fed and Treasury Department may be reacting:
Sudeep Reddy: Well the key phrase is 'if it works.' With a lot of these things, we've seen them fall apart the week after they get announced. In this case, there was a lot of talk about the bailout fund, the money that's needed here to build a firewall against Italy and Spain and all these troubles, and we just don't know what they're going to get with that.
For more analysis, listen to the full audio above.
Paul Krugman stated the solution to this European crisis lies in simply balancing the books....not austerity alone, which is all the financial news will report. I would expect Public Programming to be a conduit to the correct information. Here is my comment to Paul Krugman:
It's not a matter of believing in austerity.....it is simply the fact that this crisis is caused by the massive, criminal subprime mortgage bad debt that banks and the investor-class (top 5%) refuse to write off as a loss. As you said, it's a matter of balancing the books.
The fact that average people aren't fighting back against this can be attributed to unprecidented efforts to keep the facts out of the financial news......banks/investors need to write of these bad subprime loans and lose wealth so our economy can get back on track. Media keep harping on austerity as the only solution.
