November 30, 2011

MEGAN MCARDLE: Reasons to Worry About the Prospects for a European Bailout. “The world used up a lot of its firepower during earlier phases of the crisis. I’m not just talking about those debt and spending numbers highlighted above. I’m talking about the political capital, the diplomatic capital, the institutional capital. In 2007, if this had happened, the US could have taken a much more aggressive role in helping Europe to get its act together. These days, even if Obama wanted to do the right thing at the expense of his sure and certain defeat in 2012, he’d never get Congress to go along. Similarly, my sense is that the last few years have frayed whatever pan-European goodwill existed.”