In 1940, the Maginot Line proved woefully ineffective in protecting France from a German invasion, despite the great amount spent on its construction and the high hopes placed on its impregnability. One has to wonder whether Europe’s proposed financial firewall around Spain and Italy will prove any more effective in protecting those countries from another market onslaught than was the Maginot line in protecting France. The very design of the proposed firewall appears to be basically flawed in dealing with a renewed loss of market confidence in the euro’s long-run sustainability.
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