President Obama said tonight that European leaders must quickly fix their ailing economies and banking systems in order to help boost world financial markets -- and create jobs in the United States.
"Slower growth in Europe means slower growth in American jobs," Obama told reporters after the G-20 summit it Los Cabos, Mexico.
He also acknowledged that the festering European problems could cost him the election -- but said that's not his immediate concern.
"If we're taking the right steps, if we're doing the right thing, then the politics will follow," Obama said.
After a two-day summit of the Group of 20 economic powers, Obama expressed confidence that Europe is "determined to move quickly on measures to promote growth and investment," which he said could help "provide confidence and break the fever."
"Our friends in Europe clearly grasp the seriousness of the situation and are moving forward with a heightened sense of urgency," the president said.
I'm glad that the Europeans are aware they are pretty close to the point of no return, but the reality is they've yet to do anything substantive to fix the Greek Fire, and time is now running critically short. Spain's short-term borrowing costs have jumped to over 5% interest, and their 10-year bonds are at 7%. They are in the danger zone and will not be able to keep this up for more than a few months at most at these levels, and that time decreases rapidly if rates keep rising.
Germany remains the key to any eurozone plans. If they don't play ball, the game ends. We'll see.