They say that no news is the best news.
There was a lot of news in 2011 about Europe. During the summer, and throughout the fall, the biggest news item was the European debt crisis. European governments from Italy to Spain fell, government bonds skyrocketed,
European leaders Angela Merkel held summit after summit attempting to solve the problem, and people prepared for disaster. Some said that the European Union would not last past Christmas. Almost everybody agreed that the Europeans have failed to solve their problem.
But for some reason, the news in the past few weeks has been far less Euro-centric. The European debt crisis seems to have faded as an issue. For some reason, the it’s not making the front pages.
There might be several reasons for this. Perhaps it’s simply a coincidence, nothing more.
Perhaps the Europeans have magically solved their European debt crisis, and the issue will gradually disappear. I personally wouldn’t bet on it.
Perhaps the holiday season has slowed things down in the financial sector. The hedge fund managers and Wall Street bankers might be too busy shopping for Christmas and visiting relatives to think about Europe. Without people thinking about Europe and trading against their government bonds, things might have stabilized temporarily.
Whatever the reason, let’s hope that Europe continues staying out of the headlines for the next year and beyond.