"You have this terribly damaging political dysfunction here and in Europe that leaves the world wondering whether the political system has the capacity to do the right thing," he said. "That is very damaging to confidence."
However, he expressed confidence in Europe's ability to get out of its massive debt crisis, which has roiled global markets on fears that a collapse in a nation such as Greece will lead to another global financial meltdown. He said there is "not a chance" that Europe will have an event comparable to the implosion of Lehman Brothers in September 2009.
http://www.cnbc.com/id/44515524In the US it's the republicans and in Europe it's stasis due to fear. Merkel's hits in recent elections I think is a good thing. It seems to have jolted her a bit and brought some clarity in the way forward. In the mean time, deposits in weak banks have been dropping. US Money Market funds have reduced exposure. I still think some big European Banks want Greece to default to trigger CDS payments (which would come from American banks. Let's hope they didn't spend the premiums like AIG did). Greeks have been pulling deposits out of their banks afraid that the tax people will seize funds. Greeks cheating on their taxes is a major component of Greece's troubles. Greece actually has plenty of assets and does not need to default.
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