Haven't seen a diary on this today and that's a bit surreal. Europe's economy actually today's biggest news. Italy's 10-year bond is at 7.5%. Greece cannot agree on a new PM to replace Papandreou. Finally all the temporizing by EU leaders is coming home to roost. Italy is the 3rd largest economy in Europe. It can't really be bailed out like the small economies that have so pre-occupied the EU in the last couple of years. Italy is an extreme version of our problem. Aging population, large public debt, financial corruption, and most of all weak economic growth along with poor productivity. The 10-year bond is one thing, but imagine what the overnight rate is for Italy. The government of Italy is going to be unable to fund its current account if it isn't already.
What's the solution - if you can call it that? Well, loss of economic sovereignty for one thing. And the only way that can be a solution is if all of the Euro members agree to cede financial control to a central government - a true European government with a European Fed - the ECB, I guess. Alternatively, the Euro is D-E-A-D, dead.