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Regarding Europe:1. Today’s market rout was the worst in 3 years according to WSJ. We hadn’t realised that.
2. Also per the WSJ, the dramatic market action may push leaders to accelerate the drive towards fiscal integration, although the weird thing is, there’s really no news on this front at all. It doesn’t sound like any real action is happening to make this happen. The politics of it are also horrible, as taxpayers in the “core” (Germany, or perhaps Germany and France) will see themselves as perpetually bailing out their neighbours.
3. Greece is still a hot story, as the second bailout is not assured given the growing demands among various countries that Greece put up some kind of collateral. Greece doesn’t have a ton of time on this, either. It feels like “endgame” or the “beginning of the endgame” is coming in a matter of days—weeks at the very most.