EUROPEAN CRISIS – AT 7:57 A.M. ET:  We continue to follow closely the European financial crisis.  Bloomberg reports it's now starting to affect American companies:

United Technologies Corp. finance chief Greg Hayes sets aside some wiggle room in his profit forecast every year for swings in the euro. By March, half his safety net had already evaporated.

And...

Terex Corp., DuPont Co., McDonald’s Corp. and Johnson & Johnson also said in the past two weeks that the euro’s slide is affecting profit or may hold back growth. The 8.2 percent decline in the currency so far this year makes U.S. exports more expensive and lowers overseas sales when euros are translated to dollars, threatening a potential rebound in revenue and a lift to the economy.

The European debt crisis, like a political vacuum cleaner, is also starting to suck up politicians.  From The New York Times:

BERLIN — Chancellor Angela Merkel’s strategy for dealing with Greece’s untenable debt problem was to stall and hope the crisis did not demand action until after a critical state election in early May. On Wednesday, the clock finally ran out.

Mrs. Merkel’s hand was forced by mistrustful credit markets and the ratings agency that downgraded Spain, Portugal and Greece in a matter of just two days. As the crisis worsened, political calculations had to take a back seat to the more basic task of ensuring the stability of the euro currency that replaced Germany’s beloved mark.

The crisis could easily become full blown right in the middle of our own fall election campaign.

Wait.  Let me read that sentence again.  An American financial crisis?  Right in the middle of a political campaign?  Do I remember something like that before?  Am I dreaming? 

Look, I'm not suggesting a conspiracy.  No, I'd never suggest that.  Why, I believe the people running our government are pure of heart, virgins all, including the boys.  But a major crisis pitting the U.S. against Europe for economic survival, right in the middle of a campaign, something that could affect...benefits to Americans...

Hmm.  I didn't say it.  Don't accuse me of saying it. 

April 29, 2010