October 25th, 2013
06:24 PM ET

What I'm reading: Europe's real debt crisis

By Fareed Zakaria

“Europe is always thought of as having a sovereign-debt crisis, and it has. But the origins of the euro disaster lay less with government profligacy than with excessive private borrowing,” The Economist says. “True, Greece got into trouble because its government spent too much and collected too little in taxes. But elsewhere the bust followed a private-sector binge: mortgage debt in Ireland and Spain; corporate borrowing in Portugal and again in Spain (see article). In all three countries household and corporate debt combined were way over 200 percent of GDP before the crisis, much higher than in America (175 percent) or even Britain (205 percent).”

“Unfortunately, the euro zone has made less headway than other places in reducing this private-debt burden.”

-

“So why is it that the technology available to Mr. Obama as president doesn’t compare to the technology he used to win an election? Much of the problem has to do with the way the government buys things,” write Clay Johnson and Harper Reed in The New York Times. “The government has to follow a code called the Federal Acquisition Regulation, which is more than 1,800 pages of legalese that all but ensure that the companies that win government contracts, like the ones put out to build HealthCare.gov, are those that can navigate the regulations best, but not necessarily do the best job. That’s evidenced by yesterday’s Congressional testimony by the largest of the vendors, CGI Federal, which blamed everyone but itself when asked to explain the botched rollout of the new Web site.”

-

“Can the open-source model work for federal government? Not in every way—for security purposes, the government’s inner workings will never be completely open to the public. Even in the inner workings of government, fears of triggering the next Wikileaks or Snowden scandal may scare officials away from being more open with one another. While not every area of government can be more open, there are a few areas ripe for change,” writes Alexis Wichowski in The Atlantic.


soundoff (13 Responses)
  1. john smith

    America is the root of all terror. America has invaded sixty countries since world war 2.
    In 1953 America overthrow Iran's democratic government Mohammad Mosaddegh and installed a brutal dictator Shah. America helped Shah of Iran to establish secret police and killed thousands of Iranian people.
    During Iran-Iraq war evil America supported Suddam Hossain and killed millions of Iranian people. In 1989, America, is the only country ever, shot down Iran's civilian air plane, killing 290 people.
    In 2003,America invaded Iraq and killed 1,000,000+ innocent Iraqi people and 4,000,000+ Iraqi people were displaced.
    Now America is a failed state with huge debt. Its debt will be 22 trillion by 2015.

    October 26, 2013 at 3:55 am | Reply
  2. Karl

    Despite all the financial theories, euro zone is not doing badly, but quite well. Europeans have large and various corporations that produce high-quality products. On average, Europeans are wealthier than Americans.

    October 26, 2013 at 6:23 am | Reply
    • JASC92

      the European GDP per capita is of 27.000 USD, in the US its 50.000 USD. but then again the EU is composed by various nations with diferent economic policies with great variation of income and standards of living, Norway has a Gdp per capita of 98.000 USD and Bulgaria has 6.800 USD per capita.

      October 26, 2013 at 6:46 am | Reply
  3. ertertert3452345

    URGENTE.

    NOS LLEGO INFORMACIÓN SOBRE UN ATENTADO TERRORISTA.

    HECHO CON MATERIAL RADIO ACTIVO URANIO 14 ISOTOPO SE ESCUCHO QUE SE OBTUVO DE LATINO AMÉRICA.

    ES NECESARIO QUE NOS LLAMEN.

    0414-422-91-69 / 0414-585-00-44

    ENVÍENLO A POLICÍA INTERNACIONAL.

    QQQQQQQQQQQQQQQQQQQQpgiorg.blog.comQQQQQQQQQQQQQQQQQ

    URGENT.

    INFORMATION WE ARRIVED ON A TERRORIST ATTACK.

    RADIO ACTIVE MATERIAL FACT WITH URANIUM 14 isotope HEAR THAT WAS OBTAINED FROM LATIN AMERICA.

    WE NEED TO CALL.

    0414-422-91-69 / 0414-585-00-44

    SEND IT TO INTERNATIONAL POLICE.

    QQQQQQQQQQQQQQQQQQQQpgiorg.blog.comQQQQQQQQQQ

    October 26, 2013 at 11:50 am | Reply
    • rightospeak

      CNN paid thrall got in just as I was writing to mess up the comments.-at least he did not remove my comments. Such thralls at CNN make a mockery of the comments and make CNN look very bad. I hope he gets caught like the guy at the White House.

      October 26, 2013 at 11:59 am | Reply
  4. rightospeak

    The European debt crisis is a program of enslavement. E. U. is a paradox. While the propaganda in the media is trying to stamp out nationalism , the bankers are trying to enslave the nations .Portugal, Ireland, Greece , East European countries have become colonies of the Big Capital and some like Hungary are trying to rebel.

    October 26, 2013 at 11:52 am | Reply
  5. ertyetry556456

    URGENTE – TERRORIST ATTACK.
    NOS LLEGO INFORMACIÓN SOBRE UN ATENTADO TERRORISTA.
    HECHO CON MATERIAL RADIO ACTIVO URANIO 14 ISOTOPO SE ESCUCHO QUE SE OBTUVO DE LATINO AMÉRICA.
    ES NECESARIO QUE NOS LLAMEN.
    0414-422-91-69 / 0414-585-00-44
    ENVÍENLO A POLICÍA INTERNACIONAL.
    QQQQQQQQQQQQQQQQQQQQpgiorg.blog.comQQQQQQQQQQQQQQQQQ
    URGENT.
    INFORMATION WE ARRIVED ON A TERRORIST ATTACK.
    RADIO ACTIVE MATERIAL FACT WITH URANIUM 14 isotope HEAR THAT WAS OBTAINED FROM LATIN AMERICA.
    WE NEED TO CALL.
    0414-422-91-69 / 0414-585-00-44
    SEND IT TO INTERNATIONAL POLICE.
    QQQQQQQQQQQQQQQQQQQQpgiorg.blog.comQQQQQQQQQQ

    URGENTE – TERRORIST ATTACK.
    NOS LLEGO INFORMACIÓN SOBRE UN ATENTADO TERRORISTA.
    HECHO CON MATERIAL RADIO ACTIVO URANIO 14 ISOTOPO SE ESCUCHO QUE SE OBTUVO DE LATINO AMÉRICA.
    ES NECESARIO QUE NOS LLAMEN.
    0414-422-91-69 / 0414-585-00-44
    ENVÍENLO A POLICÍA INTERNACIONAL.
    QQQQQQQQQQQQQQQQQQQQpgiorg.blog.comQQQQQQQQQQQQQQQQQ
    URGENT.
    INFORMATION WE ARRIVED ON A TERRORIST ATTACK.
    RADIO ACTIVE MATERIAL FACT WITH URANIUM 14 isotope HEAR THAT WAS OBTAINED FROM LATIN AMERICA.
    WE NEED TO CALL.
    0414-422-91-69 / 0414-585-00-44
    SEND IT TO INTERNATIONAL POLICE.
    QQQQQQQQQQQQQQQQQQQQpgiorg.blog.comQQQQQQQQQQ

    URGENTE – TERRORIST ATTACK.
    NOS LLEGO INFORMACIÓN SOBRE UN ATENTADO TERRORISTA.
    HECHO CON MATERIAL RADIO ACTIVO URANIO 14 ISOTOPO SE ESCUCHO QUE SE OBTUVO DE LATINO AMÉRICA.
    ES NECESARIO QUE NOS LLAMEN.
    0414-422-91-69 / 0414-585-00-44
    ENVÍENLO A POLICÍA INTERNACIONAL.
    QQQQQQQQQQQQQQQQQQQQpgiorg.blog.comQQQQQQQQQQQQQQQQQ
    URGENT.
    INFORMATION WE ARRIVED ON A TERRORIST ATTACK.
    RADIO ACTIVE MATERIAL FACT WITH URANIUM 14 isotope HEAR THAT WAS OBTAINED FROM LATIN AMERICA.
    WE NEED TO CALL.
    0414-422-91-69 / 0414-585-00-44
    SEND IT TO INTERNATIONAL POLICE.
    QQQQQQQQQQQQQQQQQQQQpgiorg.blog.comQQQQQQQQQQ

    URGENTE – TERRORIST ATTACK.
    NOS LLEGO INFORMACIÓN SOBRE UN ATENTADO TERRORISTA.
    HECHO CON MATERIAL RADIO ACTIVO URANIO 14 ISOTOPO SE ESCUCHO QUE SE OBTUVO DE LATINO AMÉRICA.
    ES NECESARIO QUE NOS LLAMEN.
    0414-422-91-69 / 0414-585-00-44
    ENVÍENLO A POLICÍA INTERNACIONAL.
    QQQQQQQQQQQQQQQQQQQQpgiorg.blog.comQQQQQQQQQQQQQQQQQ
    URGENT.
    INFORMATION WE ARRIVED ON A TERRORIST ATTACK.
    RADIO ACTIVE MATERIAL FACT WITH URANIUM 14 isotope HEAR THAT WAS OBTAINED FROM LATIN AMERICA.
    WE NEED TO CALL.
    0414-422-91-69 / 0414-585-00-44
    SEND IT TO INTERNATIONAL POLICE.
    QQQQQQQQQQQQQQQQQQQQpgiorg.blog.comQQQQQQQQQQ

    URGENTE – TERRORIST ATTACK.
    NOS LLEGO INFORMACIÓN SOBRE UN ATENTADO TERRORISTA.
    HECHO CON MATERIAL RADIO ACTIVO URANIO 14 ISOTOPO SE ESCUCHO QUE SE OBTUVO DE LATINO AMÉRICA.
    ES NECESARIO QUE NOS LLAMEN.
    0414-422-91-69 / 0414-585-00-44
    ENVÍENLO A POLICÍA INTERNACIONAL.
    QQQQQQQQQQQQQQQQQQQQpgiorg.blog.comQQQQQQQQQQQQQQQQQ
    URGENT.
    INFORMATION WE ARRIVED ON A TERRORIST ATTACK.
    RADIO ACTIVE MATERIAL FACT WITH URANIUM 14 isotope HEAR THAT WAS OBTAINED FROM LATIN AMERICA.
    WE NEED TO CALL.
    0414-422-91-69 / 0414-585-00-44
    SEND IT TO INTERNATIONAL POLICE.
    QQQQQQQQQQQQQQQQQQQQpgiorg.blog.comQQQQQQQQQQ

    URGENTE – TERRORIST ATTACK.
    NOS LLEGO INFORMACIÓN SOBRE UN ATENTADO TERRORISTA.
    HECHO CON MATERIAL RADIO ACTIVO URANIO 14 ISOTOPO SE ESCUCHO QUE SE OBTUVO DE LATINO AMÉRICA.
    ES NECESARIO QUE NOS LLAMEN.
    0414-422-91-69 / 0414-585-00-44
    ENVÍENLO A POLICÍA INTERNACIONAL.
    QQQQQQQQQQQQQQQQQQQQpgiorg.blog.comQQQQQQQQQQQQQQQQQ
    URGENT.
    INFORMATION WE ARRIVED ON A TERRORIST ATTACK.
    RADIO ACTIVE MATERIAL FACT WITH URANIUM 14 isotope HEAR THAT WAS OBTAINED FROM LATIN AMERICA.
    WE NEED TO CALL.
    0414-422-91-69 / 0414-585-00-44
    SEND IT TO INTERNATIONAL POLICE.
    QQQQQQQQQQQQQQQQQQQQpgiorg.blog.comQQQQQQQQQQ

    URGENTE – TERRORIST ATTACK.
    NOS LLEGO INFORMACIÓN SOBRE UN ATENTADO TERRORISTA.
    HECHO CON MATERIAL RADIO ACTIVO URANIO 14 ISOTOPO SE ESCUCHO QUE SE OBTUVO DE LATINO AMÉRICA.
    ES NECESARIO QUE NOS LLAMEN.
    0414-422-91-69 / 0414-585-00-44
    ENVÍENLO A POLICÍA INTERNACIONAL.
    QQQQQQQQQQQQQQQQQQQQpgiorg.blog.comQQQQQQQQQQQQQQQQQ
    URGENT.
    INFORMATION WE ARRIVED ON A TERRORIST ATTACK.
    RADIO ACTIVE MATERIAL FACT WITH URANIUM 14 isotope HEAR THAT WAS OBTAINED FROM LATIN AMERICA.
    WE NEED TO CALL.
    0414-422-91-69 / 0414-585-00-44
    SEND IT TO INTERNATIONAL POLICE.
    QQQQQQQQQQQQQQQQQQQQpgiorg.blog.comQQQQQQQQQQ

    October 26, 2013 at 12:52 pm | Reply
    • rightospeak

      See what I mean ? A paid CNN's thrall to mess up or to manipulate the comments – erty . He probably walks the halls of CNN with a smirk on his face like the arrogant guy that wrote comments from the White House and got caught. He enjoys the power CNN gave him in throwing out comments he personally does not like. A little jerk. He proved my point.

      October 26, 2013 at 3:07 pm | Reply
  6. chrissy

    Lol @ rightospeak, are you referring to the 12:52 post by Sir Spamalot also known as Queen Spamalot and various other troll names but in reality his name is Jeff G Roem. He has been cnn's resident i d i o t for quite some time now. Many years in fact and it has been hinted that yes, he indeed is employed by them!

    October 26, 2013 at 7:30 pm | Reply
    • rightospeak

      Thanks chrissy, now we are getting somewhere. Why hasn't CNN fire him ?-he is a dirt in their eye or a pain you know where. Does he have a rich daddy that owns CNN ?

      October 27, 2013 at 6:12 pm | Reply
  7. chrissy

    Lol @ rightospeak, beats the he!! outta me! And yea pain in the dupa for sure! He torments everyone on the TJI blog and mainly me! But they know his name, ive not been shy about saying it. And if I could get that info you KNOW they can so my guess is, they just dont care.

    October 29, 2013 at 4:23 pm | Reply
    • rightospeak

      This phenomenon is not unique to CNN. I noticed similar tactics even on amazon comments. People that work for amazon will distort comments and attack authors they do not like. NBC and Reuters use same or even more blunt forms of intimidation.
      I remember over a year ago how someone at CNN was not able to remove my politically incorrect comments. Obviously he/she did not like them, maybe went to a bathroom, so he/she flashed across my screen in desperation " YOU ARE BANNED" in red and pink. Maybe some people would be intimidated , but they had the wrong person – I take democracy, whatever is left very seriously.. Many of my comments vanished since that incident, but I eventually manage to get through unless it is a topic like nuclear energy where they are very vigilant and remove promptly any comment disagreeing with their article.

      October 30, 2013 at 10:25 am | Reply
  8. rightospeak

    We have a real problem . Money Multiplier the lowest in the 100 year history of the Federal Reserve because of financial market speculation- a very real danger. Miami harbor is being converted into a deep sea port using Chinese construction cranes because our Congress allowed destruction of our heavy industries so we are becoming a Third World Country. Our debt is beyond our capacity to pay and we are worried about Europe ?

    October 30, 2013 at 9:54 am | Reply

Post a comment


 

CNN welcomes a lively and courteous discussion as long as you follow the Rules of Conduct set forth in our Terms of Service. Comments are not pre-screened before they post. You agree that anything you post may be used, along with your name and profile picture, in accordance with our Privacy Policy and the license you have granted pursuant to our Terms of Service.