2010-07-20

Has the debt situation fundamentally improved in Europe?


Fears Intensify That Euro Crisis Could Snowball
After Tumult, Debt Worries Ease in Europe
Just two months ago, Europe’s sovereign debt problems seemed grave enough to imperil the global economic recovery. Now, at least some investors are treating it as the crisis that wasn’t.

The euro is up 10 cents from its lows versus the U.S. dollar and some investors are ready to declare the passing of the crisis, but volatility is high in the markets because investors' minds are volatile. They are moving rapidly between Armageddon and Goldilocks as they try to understand and accept reality. Many cannot fathom a long period of economic crisis because it hasn't happened in 80 years and the mood picks up rapidly on an otherwise typical bounce rally.

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