The market. It’s about the Spanish. It’s about the intervention – which is a metaphorical bazooka that the central banisters and policy makers may or may not pick up.
Not so quick with the bull run. The situation is not corrected. The announced bailout is Spain asking for money, from the pre made emergency fund – but not that they have gotten it yet. How happy is Germany going to be about this? What about the wrench of all bailouts – democracy in each country. There is a long way from here to actual stability is my lambastic claim. The core issue – the lack of fiscal sovereignty to devalue currency and a lack of a federal tax collecting bond guaranteeing strong fiscal union, is years from being solved and will take years to complete. The market will head generally down until that universally pointed out problem looks like it has the genetics of a solution. I am saying that this newfound euphoria for Monday’s launch is overblown. People are way to bullish for next week.
New lows will be found, and soon. This bailout is just not yet finalized. The market never goes in a straight line to where it should.