The G 20 meeting, supposedly the 20 largest economies in the world, ended last weekend with most non-EU countries criticizing the European Union for not resolving its current crisis revolving around Greece and Spain.  European Commission President Barosso pointedly told the group that the EU does not need advice and carping from others.  It is perfectly able to resolve its problems without outside interference. 

However, it was instructive to see the “BRICS,” which means Brazil, Russia, India, China and South Africa, who represent the top “emerging” economies of the world, with the exception of South Africa, which really should not be in this group, state their intention to provide more funds for the EU “bail-outs.”   The new guys are feeling their oats.

Barosso has a point.  The EU has the world’s largest economy and as such has the resources to solve its problems.  The issue revolves around what is the best use of its resources.  Germany continues to insist that sweeping reconstruction of stumbling economies is the first requirement which focuses on cutting government expenditures.  In this they are joined by Austria and Finland.  Opposing this is the new French government and others with the Greek government caught between a hard place and a rock. 

I would urge non-EU members, especially the USA, to stay out of the way and let the Europeans resolve this themselves.  IMF Chief LeGarde reiterated what most have been saying, the first thing is to create a unified economic leadership - a “supranational” ministry of finance?  And the first instrument to use would be a EuroBond. 

The center of the economic maelstrom is Europe.  Let’s hope they get it right. 

STOCK TIP

I once worked on Wall Street which at the time was actually housed in New York’s World Trade Center so know something about how to select a good stock.  My most reliable tip is to buy Bank of America when it falls to $5-6 a share and sell when it hits $15.  You would be amazed at how often this occurs.  The basic rationale here is that BoA sits on some $2 trillion in assets under its care and a huge book value of its own assets that equal a value of  $10 a share.