Eric Feferberger/Getty Images
German Chancellor Angela Merkel (L) and French President Nicolas Sarkozy (R) give a press conference after a working lunch at the Elysee palace on December 05, 2011 in Paris. France and Germany want summits of leaders of eurozone states to be held 'every month, as long as the crisis lasts,' Sarkozy said.
UPDATE: Well, that was brief! Reuters is reporting that S&P is back in sovereign-credit-downgrade mode. The agency has threatened to pull an America on the six eurozone countries currently in possession of an AAA rating — including France and Germany. We'll see how long this rally holds.
The latest surge in hope the Europe will be able to manage its debt crisis has caused the markets to rally over the past few trading sessions. However, the latest kinda sorta deal also reveals the schizophrenic situation that Germany keeps backing itself into.
On the one hand, Germany doesn't want to throw its weight behind a plan to make the eurozone work more like the U.S., where the Federal Reserve can function as the (nearly) undisputed central authority on matters monetary. On the other hand, Germany wants to call the shots of fiscal issues, compelling everyone else to act more like...Germany!
My continuing effort to track the eurozone crisis via Storify continues. And the outlook for the single currency just gets worse and worse. Greece, Italy, and Spain have joined Ireland and Portugal in the basket-case category. France is under threat as its borrowing costs rise, and now even Germany is having trouble getting investors to buy its bonds.
On the plus side, I think we're running out of countries in Europe to see infected by this.
Justin Sullivan/Getty Images
DAVIS, CA - NOVEMBER 21: UC Davis Chancellor Linda Katehi (C) wipes her eye as she is escorted to a car after speaking to Occupy protestors during a demonstration at the UC Davis campus on November 21, 2011 in Davis, California. Thousands of Occupy protestors staged a demonstration on the UC Davis campus to protest the UC Davis police who pepper sprayed students who sat passively with their arms locked during an Occupy Wall Street demonstration on November 18. (Photo by Justin Sullivan/Getty Images)
In the aftermath of the UC Davis pepper spray incident, when campus cop Lt. John Pike unleashed the nasty dispersing agent on a group of Occupy protesters who had refused to leave the university's quad, Chancellor Linda Katehi has been standing her ground, cooperating with an investigation rather than resigning.
This sounds like a prudent course of action and has attained some credibility, especially now that former LA Police Chief and New York City Police Commissioner William Bratton — not a man to be trifled with — has been appointed by UC to lead to lead the inquiry.
But of course, the outcome is already baked in the cake. Chancellor Katehi, who reportedly ordered the campus cops to remove the protesters and their tents from the quad, is now fighting for her career. She's just thrown the offending officers under the bus, declaring that they defied her order to avoid a repeat of an earlier action against Occupy at UC Berkeley, which turned ugly.
Hundreds of Occupy protesters gathered in downtown L.A. for a march through the financial district.
Here's a real barn-burner of an opinion essay from David Coates, a professor at Wake Forest who harbors no love for the global banking class — the financial elites who brought us the financial crisis, as well as the eurozone crisis, and who are currently getting rid of elected leaders in Europe at a brisk clip while doing whatever it takes to stall reform in the U.S. Not surprisingly, Coates sees Occupy Wall Street — which in recent weeks has come under siege from authorities — as being a populist movement that's trying to push back against the bankers.
This a taste of his lash, from the Huffington Post:
We live in troubled and ironic times. The times are certainly troubled. The IMF's Managing Director has recently spoken with some justification of a looming "lost decade" for the global economy — warning of "dark clouds" blocking the capacity of the world's leading economies to deliver a renewed bout of economic growth and generalized prosperity. The times are also deeply ironic: since the governing solution to those dark clouds — in countries as substantial as Italy and Greece, and in institutions as powerful as the IMF — would currently appear to be the replacement of elected leaders by appointed technocrats. The solution favored by the powerful is the transfer of state authority from democratically chosen leaders to governors drawn predominantly from the ranks of the very bankers whose inadequate supervision of their own industry darkened the skies in the first place. In this manner, a global financial crisis that initially discredited bankers has incrementally morphed into one to be settled on terms directly specified by bankers themselves. A crisis of economics has been turned into a crisis of democracy. It is an outrage.
Just because markets are up in the U.S., that doesn't mean Europe isn't still basically going to hell. The Eurozone hasn't been granted a reprieve simply because a few prime ministers have been sent packing. Greece still has massive debt. Italy still has massive debt. Spain still has massive debt. This may not end well. At least, it may not end with the euro surviving as a currency.
Storify tells the tale:Follow Matthew DeBord and the DeBord Report on Twitter.