Mike Shedlock on the Spexit, the Grexit and Running for the Eurozone Exit!!

Welcome to Capital Account. A slew of bad news out of Europe, as Irish voters today attempt to exercise their sovereignty and cast their ballots in a referendum on Europe’s fiscal consolidation treaty. Meanwhile, European central banker Mario Draghi made it clear he’s fed up with national sovereignty. The ECB says europe needs new tools to fight bank runs and Draghi says the lesson from Spain’s Bankia was that the supervision of eurozone banks should rest with a central authority, not national regulators. Isn’t that what we have in the US now with the Federal Reserve? How’s that working out?

And speaking of Spain, will we see a SPEXIT before a GREXIT? Mike Mish Shedlock is here to talk about why that could be the case. Mish says that the sooner Spain sees the light and gets out of the Euro that is strangling it, the better off Spain will be. The same goes for Greece, and possibly a slew of other nations in the Eurozone.

And last but not least, back in the US, GDP was revised downwards from 2.2 to 1.9 percent. At the same time, borrowing costs for the United States are at 60-year lows for the 10-year government bond. So what gives? Are the Hyperinflationists right, or is the market proving the Deflationists’ argument? Meanwhile, the Obama administration’s attempt to build an industry of battery-makers for electric cars is sputtering. Subsidized firms are struggling; they don’t have many customers. They are operating way below capacity. This is according to the Wall Street Journal. So what was the problem? Government grants were linked to production calendars and not to market demand. So is this a great example of what happens when government picks winners and losers? Or is there a role for Uncle Sam in alternative energy?