Like a beaten dead-horse, the headlines continue to focus on news out of Europe and how they are handling the crisis. As we all know too well, politicians are far more concerned about being re-elected than the future of their constituents. We saw this in the U.S. Debt Ceiling crisis of last summer where politicians waited to the very last minute to make a deal while markets were crashing. The long, and complex European debt crisis is a bigger example of this. The politicians in Europe are more focused on keeping their jobs than solving the problem. They know that there has to be "blood in the streets" before making the tough decisions that are necessary to reverse decades of an entitlement culture. These changes will not fly with voters unless they witness how badly the markets swoon if not addressed. That being said, a forward-thinking person should expect that Europe will not act decisively until the stuff hits the fan. Therefore, as a stock market trader - I will not be optimistic until things get so bad that the European politicians are forced to make the tough (and derisive) decision to form a true fiscal union.
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