Europe’s finance ministers are panicking: they’ve done everything in their power – or so they believe – to save the Euro, yet the currency is becoming worth less and less. They don’t understand what’s going on, they’ve pumped billions into the Euro and into Europe’s failing economies, yet the European stock markets continue their free fall.

The European Union bailed out Greece, signaled its willingness to bail out other failing states as well if necessary and created a 500-billion emergency fund for the Euro. As Brussels expected, European stock markets recovered immediately after the different rescue plans were announced, and the Euro seemed to recover.

Well, the party lasted exactly one day. After that, the stock markets and the European currency continued their free fall as before. The Euro is now worth a mere 1,236 USD; the lowest point since 2008 when Lehman Brothers filed for bankruptcy.| MORE ›

Bloomberg reports that Germany’s Angela Merkel refuses to stimulate the economy more than she has already done.

Chancellor Angela Merkel stood firm in rejecting any new German economic stimulus program even as the International Monetary Fund said the recession is worse than previously thought and called for measures to spur demand.| MORE ›

Good news for those of us who love Keynes (which is guess is virtually no one):| MORE ›