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Everything is up today, and it all seems to have been spurred by news reports about China buying European sovereign bonds, and perhaps doing more investment in the Eurozone.It’s not a bad things that China wants to “buy Europe” but it’s pretty meaningless, especially the bond buying part.
First of all, this has been announced before, and it’s had no lasting impact. More importantly though, the problem facing Greece/Ireland/Portugal/Spain isn’t a lack of bond buyers, it’s a lack of money. At the margins, more buyers could lower interest rates a bit, but can’t do anything about their sick economies, and general insolvency. So, expect a one-day buzz or so, and that’s it.