Photo: Wikimedia Commons
Here’s a fact: Everytime European leaders announce a bailout for Greece (or anyone else) the rally fades in, as spreads just keep widening and widening.Everyone knows that’s that pattern, so we wonder how short the half-life of a Euro bailout rally has become, and whether this one will be the shortest one ever.
We still don’t know all the details, which are due to be hammered out/presented/agreed upon in some form on Thursday, though a rough sketch is here.
Of course, this is only a Greek solution — nothing that resembles the kind of systemic shift the Eurozone needs (we may revisit that if it looks like Eurobonds or some other shared fiscal framework emerges, though for now that’s just talk).
Already, the pop in futures after the announcement has come off a bit.
We’ll see how long it takes for it to totally evaporate.