The Europe situation seems different this year. Probably because it is different.
How can investors be as scared as they were in August 2011, at a time of legitimate bank runs taking place, when the following are in play:
1. EFSF + ESF + IMF = +1trillion at the ready.
2. An ECB proven to facilitate, now that cost controls are in place.
3. A mechanism to cutoff a troubled country. (Cut the leg off to save the life.)
Am I being too optimistic? Maybe. Not trying to down play the hurdles Europe face, cause those hurdles are powerful, but the scenario from last year is simply not the same.
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