January 23, 2008 (LPAC)--European political and financial "leaders" are still trying to pretend that the breakdown of the global financial system is an "American problem" which Europe may survive. We present some specimens of this impotent and deadly denial:

French Economy Minister Christine Lagarde said just yesterday that the global stock market swoon was just a "sudden correction," insisting that the European economy was still growing, according to Xinhua. A U.S. "recession," she claimed, would not be a "tragedy for France."

German Chancellor Angela Merkel went even further, asserting that "there is no sign of a recession in Germany... Citizens should under no circumstances make hasty decisions" about abandoning the financial markets. "We are discussing whether any measures need to be taken," Merkel said, "but remember, financial markets are independent." Quoted from the Financial Times.

Jean-Claude Junker of Luxembourg, chairman of the European Union finance ministers group, said yesterday that "We have to be concerned, but a lot less than the Americans, on whom the deficiencies against which we have warned repeatedly are taking bitter revenge. We are much better placed in the eurozone and in Europe than our U.S. friends are."

E.U. monetary affairs commissioner Joaquin Almunia insisted that the crisis "is not about global recession. It's about a recession in the U.S.," and cited the "solid, sound fundamentals" of the European economy. "We are well prepared to weather this situation," he asserted yesterday.

Italian Finance Minister Tommaso Padoa-Schioppa dismissed the stock market rout as a mere "correction... a correction to important imbalances."

Whether they actually believe this nonsense or are merely lying to the public we can't say, but they certainly fall well short of the standards of bravery and leadership required in these dire times.