The New Euro?

Three fourth of the PIGS have now beenin most polls, but it's not clear that the lead will be
downgraded. Portugal, Greece, and Spain haveenough to give them a majority when voters
taken their initial hits. Italy will follow, but howcast ballots on May 6.
about Ireland and maybe a place in the WestA confident-seeming Cameron fended off Brown's
called California? The euro is the official currencyattacks, saying time and again that Brown was
of the European Union (EU), and is currently in usewrong on the facts.
in 16 of the 27 Member States. The states,Back to the real fight.
known collectively as the eurozone, are Austria,The debt crisis in Europe gets worse with each
Belgium, Cyprus, Finland, France, Germany,passing day. Ratings agencies have recently
Greece, Ireland, Italy, Luxembourg, Malta, thedowngraded Greek bonds to junk status, as well
Netherlands, Portugal, Slovakia, Slovenia andas lowered the ratings of Portugal and Spain. In
Spain.  response, the European Union and the
On Thursday the highly regarded Nouriel RoubiniInternational Monetary Fund are pondering
said that the Euro could be TOAST in days.whether to bail out Greece, perhaps to the tune
Well, here's his exact quote, "The euro zone'sof 120 billion euros.  Roubini additionally says,
days may be numbered. In a few days, there"While today, markets are worried about Greece,
might not be a euro zone for us to discuss," heGreece is just the tip of the iceberg, or the
said at a Los Angeles conference sponsored bycanary in the coal mine for a much broader range
the Milken Institute. A few days.  Hmmm. Wellof fiscal problems."
that takes the event into the May 3-7 windowThe problem here is called DOMINOS!
that has been on my radar screen for severalAlmost $1 trillion of worldwide equity value was
months now: more specifically May 6th. Why? Ierased on Wednesday on concern that rising
dunno or sure.public debt will spur defaults, derailing the global
I know, or at least I think, it has nothing to doeconomy, data compiled by Bloomberg show.
with the British elections on that day.German Chancellor Angela Merkel and the IMF
The last of the three British debates was heldpledged to step up efforts to overcome the
today. British Prime Minister Gordon Brown foughtGreek fiscal crisis, after bonds and stocks plunged
to hold on to his job Thursday in a debate againstacross Europe in the past week. I think it's too
the two men who hope to replace him, Davidlittle too late.
Cameron of the Conservative Party and NickWho knows where this might go: howeer, one
Clegg of the Liberal Democrats. Thething I am certain of and that is being OUT of the
Conservatives are ahead of Brown's Labour partystock market is one of the safest bets going.