Euro – Anchor of Stability?

The world’s attention is on the fiscal malaise in Greece and Portugal. Just a few months ago, policy makers told banks to shore up their balance sheets with more sovereign debt. However, policy makers around the world have since raced to spend money in an attempt to reinvigorate their respective economies, leading to record deficits. Now everyone appears surprised that weaker countries are having difficulty financing their largesse. In our assessment, what we see unfolding is a sign of greater instability to come. That said, writing off the euro may be premature; as global dynamics play out, we believe…