One Way or Another, Europe Holds Key to Market’s Fate | Daily Ticker - Yahoo! Finance#more-id ;..
Unlike many observers, Wood believes there is an actual "solution" to Europe's problems, which is to move closer to a U.S. model of fiscal and political union, featuring "Europe-wide" solutions such as Eurobonds and common banking regulations.
"The European leaders are going to have to come up with a very dramatic compromise to creating something closer to the United States of Europe," he says. "They need to integrate with one fiscal authority. They need to come together and take 17 poorly cobbled together pieces and make it a cohesive unit."
But that's easier said than done and "it's going to have to get a lot worse before it gets better," Woods predicts. EU leaders are "going to have to make some unpleasant and politically extremely unpopular compromises."
At this juncture, it doesn't seem as if EU leaders are willing (or able) make those choices. Barring some coordinated action by global central bankers, the market might just force it upon them.
Aaron Task is the host of The Daily Ticker. You can follow him on Twitter at @aarontask or email him atmailto:altask@yahoo.com
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