But didn’t Merkozy say that Greece was in or out? I’m hearing from a lot of traders (myself included) that this has all just become too confusing to figure out. Liquidity is abysmal. Can Greece default, wipe out the debt, and stay in the Euro? The IIF has taken the time to say that the EFSF plan for bank recapitalization is flawed, but still can’t announce the plan for Greek haircuts? Though I guess that is off the table until Greece decides what it is going to do?
Yesterday we rallied on Ben’s Q&A. I don’t agree with his policy, but he clearly does, and if anything wants to do more, and without a doubt, his actions have helped stocks. It still amazes me how much power this individual has, but the reality is, he has it, and likes to help stocks. Definitely good for risk assets.
The faith being placed in European politicians to fix anything baffles me. They have failed at each and every step. Not just failed, but made it worse. They have spread the contagion, not stopped it. They have created an entity to issue binary cds. That is there big grand plan. It might work but I think the market is giving them far more benefit of the doubt than they deserve. The only person who has told the truth in Europe is Juncker, and that is when he said sometimes he needs to lie.