The Washington Post reminded readers why it is known as Fox on 15th Street when it referred to an agreement among European leaders that it said would "limit the perennial budget deficits that are the root of the crisis."

Both parts of this statement are demonstrably false. Of the five countries now facing an imminent debt crisis, only Greece and Portugal had consistent deficit problems prior to the economic collapse in 2008. Italy had a declining ratio of debt to GDP and Spain and Ireland were running budget surpluses.

The root of the crisis was a speculative bubble in the real estate markets in Spain, Ireland and much of the rest of Europe. With few exceptions, the people who profited from this bubble and the people in policy positions who let it go unchecked are still in the same positions as they were before the crisis. Like the Post, many of them are trying to shift blame to profligate government spending. 

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