EUROPE'S CHALLENGE

America has the Federal Reserve Bank and one government ... Europe has
the European Central Bank and today 16?21? governments.
For Europe to sail through todays fiscal and banking crisis, the Council
of Ministers must concur on executive and legislative approaches which
prod the ECB to loosen the EURO and credit.

The COM can do this by further expanding national deficit options (more
than agreed the past weekend), and sustain other nations joint planning
for relief with the North American nations, Japan and theUK (the UKis
not in theEURO pool). G-7/8 approaches & bilateral arrangements.

The ECB may balk on credit (money supply) but would be politically
overruled by the European Union's members. Those deficits will be
incurred for social services and re-capitalization plans.

Should Europe fail to jointly quckly move, those nations must save
themselves and welcome the laggards (and what would be left of the
Union) after.

Insuring bank account deposits saves consumers .. .and joint action
averts the international runs of money - comparable to tariffs and
interest rate wars.

Most stock market activity now is debt consolidation and reading of
forward profits with P/E rations leading stock prices and exchanges.
Banks and governments will forward capitalization with bonds and
partnering in the short term, Weathering the service sector
repurcussions and employmnet fall-offs will be the hardest part of the
crisis -- so will preventing a disaster of it.

Housing markets will lag without forward incomes to purchase - so
willl hard goods. Banks and consumers will consolidate - unless risk
lessens.