European (debt) vacation
Euro stocks are up, Italian and Spanish yields are down… Things are looking good in Europe!
If only…
Looks like the additional liquidity provided by the ECB is doing the trick but this is only a temporary reprieve, all the underlying debt problems remain.
Also, look at the bond buyers. Other reports highlight that Italian and Spanish bond buyers are domestic banks and not international investors. So while confidence hasn’t returned to Europe, fully dealing with the underlying the problem has been successfully postponed to the future.
A Musing 
Comments are closed.