Search This Blog

Thursday, May 10, 2012

Europe - feels different

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.

No comments:

Post a Comment