Mr. Market isn’t happy with all the extending and pretending from Angela Merkel. He wants to see big time bond purchases by the ECB to forestall a Euroland-wide contagion and the possible breakup of the single currency regime.
Hard to see this happening, given the complete dishonesty with which Chancellor Merkel has approached the inevitable. German and other relatively flush Northern European taxpayers will need to decide once and for all whether they’re ready to bail out the European banking system. Cost: at least $2 trillion.
Gorilla says: “Two speed Europe only has reverse gears!”