Europe...has high domestic savings rates and balanced trade accounts with the rest of the world. Europe, unlike the United States, is not increasingly in hock to China.
A senior French banking official told me, "If a banker promoted these subprime mortgages here, he would go to jail."
In a recent interview, Germany's Gunter Verheugen, vice president of the European Commission, told me, "We need a strong and competitive industrial base in order to have a strong service economy. Don't try to be cheaper. Try to be better. Don't try to compete on low social standards."