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The debt markets could get dicey again in a few weeks or months as the political situation in Europe continues to have greater dysfunction and turmoil with new elections. As the needed austerity programs take hold, the unions and others are up in arms over having to live within the means of their countries for the first time in a generation. The labor laws in much of Europe have been structured such that it is essentially to fire anyone and if there is a layoff, the redundancy pay is prohibitive. As a result the cost to produce in much of Europe is higher than most of the world and inefficiency prevails. In Italy most companies stay small because the economics of growing just do not work. Between the labor laws and the bureaucracy, and the massive corruption brought about by the restrictive laws, it is not worth building a sizable business. In Greece it is similar and almost impossible to start a new company. In Spain as in Italy and Greece and elsewhere, there is little change in a workers lifestyle to be employed or unemployed. You get a wage or you get social welfare of similar amounts in many cases. I had a Spanish doctor tell me over a year ago, that 20% unemployment was not really a problem because workers get unemployment, full healthcare and other benefits. She told how you would never know there was widespread unemployment if you saw how crowed the restaurants are. That is the policies that got Spain into the mess it is in.

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