Ray Dalio of Bridgewater Associate shares some very pertinent insight into the deleveraging processes taking place in both the United States and Europe. He correctly identifies that the closest parallel to the current European crisis is situation the United States of America found itself in when it had the Articles of Confederation before the establishment of the constitution. It is essential that the ECB has the ability to issue bonds and have some form of control over the fiscal policies of nations within the Euro. A united EU could make the Euro Zone more formidable then ever but there is absolutely the risk that individual companies might elect to bail out of the EU, rather than take the difficult steps that will be required.
INVESTING IN THE FINANCIAL MARKETS INVOLVES RISKS. OPTIONS ARE NOT SUITABLE FOR ALL INVESTORS.