Markets worldwide rallied today on news that European Union leaders will allow troubled banks to access emergency funds, temporarily reducing global anxiety over the continent's growing debt crisis. OutFront tonight to discuss are Stephen Moore of the Wall Street Journal editorial board and Jim Kessler, senior vice president for policy and co-founder of Third Way, an economic think tank.
OutFront tonight: touched by an angel.
German Chancellor Angela Merkel put another band-aid on the ballooning European debt crisis today, as E.U. leaders announced they will allow troubled banks to use emergency money from the union's rescue funds. This was a fairly significant concession from the German leader, and it led to markets rejoicing worldwide.
And of course, what's good for the markets is good for President Obama.
Now, we hate to be the bearer of bad news, but we here at OutFront are realists. And this bailout agreement is just a band-aid on a gaping wound. Granted, it's a big band-aid, but it's still a temporary solution that doesn't address the fundamental economic problems in Europe.
As Peter Boockvar of miller tabak told us today: "For now, party on and turn that hour glass over as more time has been bought. But only the symptoms are being fought, as the underlying disease of excessive debt and lack of growth still remains."
The Euro debt crisis continues to unsettle world markets and threaten our country's economic recovery as officials from countries like France, Spain, Italy, and Germany remain committed to keeping the European Union together.
According to several analyses, the price tag of that commitment, the cost of bailing out the E.U., could be as high as $6 trillion. Is more trouble than it's worth? Joining the discussion is Doug Holtz-Eakin, president of the American Action Forum and former director of the Congressional Budget Office.
OutFront tonight: Greece collapses. Well, the finance minister did anyways.
In what must have been a depressing visual for the distressed country, Vassilis Rapanos, the country's new finance minister, fainted just hours before he was to be sworn into his new job and had to be rushed to a hospital.
Additionally, Greece took a shellacking from Germany in the highly-anticipated Euro 2012 soccer match today, an outcome that many believed to be inevitable.
Sort of like... the end of the European Union? Italian Prime Minister Mario Monti warned today in one week the European debt crisis could move past the point of no return and lead to the breakup of the E.U.. And that's after a meeting between officials from France, Italy, Spain, and Germany met and declared they must do anything they can to save their currency.
But here's our question: could saving the E.U. be more trouble that it's worth? Erin Burnett explains that while it would take a lot of time and money to dismantle it, it would take even more of both to bail everyone out.