While not my first choice for public policy,
the 20 billion euro ECB bond buying isn’t nothing.
It’s something over $1.3 trillion per year at current exchange rates.
At the macro level it sort of funds the entire euro zone deficit spending.
And deficits are currently reasonable high.
So, even while recognizing that timing is everything,
the solvency issue could be in the process of stabilizing as the various ‘new’
‘E’ funding proposals and IMF come closer to fruition.
Not that the euro economy will boom anytime soon
as austerity measures take their toll,
but that ‘leg 2′ of the relief rally could be in progress.