European Summit: Have they done it?

The European Summit has produced three agreaments:

1. Bailout funds will go directly to Spanish banks and will not increase Spain's indebtedness;

2. Tighter financial union.

3. Spend $120B on stimulating the economy.

No Eurobonds as yet.

Will this solve the problem? Well, stock markets are up along with some banking stocks, oil and gold. The markets do not view these steps as deflationary. Yes, but do they solve the debt crisis and the contracting economy?

In my humble opinion - NO. While, the direct aid to Spanish banks will be helpful, the debts remain. The tighter financial union seems meaningless to me. In order to achieve it, much must be done in terms of changing treaties and basic law. That will take time and is pushed by Germany only. Nor is it certain that the German Bundestag will approve of the bailouts as they stand. Finally, the stimulating of the economy. One hundres twenty billion dollars! Really? In the US, $800B did not do it. It is doubtful that $120B will do it in Europe.

What is slowing the European economy is the Socialism Europe practices. That and the gutting of the US economy by the Obama policies. Unfortunately, these continue. The debts remain and will continue to pile up.