Hard to trade off this fundamental logic, but it is 100% true:
“In my opinion it is not a matter of if the Euro will ultimately fail or require some form or restructuring (such as defections), but when. This bailout may have bought the EMU some time, but it has not resolved the structural problems which will continue within the EMU. My greatest fear (for markets in the near-term) is that the ‘speculators’ now know the system is broken (while the politicians do not) and they will continue to weigh on the market until it breaks. Many say that these ‘speculators’ are having an adverse impact on the markets. I fully disagree. When a young male lion attacks and kills his weaker competitors, the integrity of the food chain is kept intact and ultimately strengthened when the weaker animal is killed (or prevented from mating). Ultimately, the species is strengthened and its odds of survival substantially increased over the long-term. While this causes some near-term pain it is ultimately a benefit to the species as a whole. The Euro is broken. Single currency systems do not work and they must be killed. In the long-term, it is in the best interest of all involved. If the politicians in Europe are wise they will begin working on real structural reforms now that they have bought themselves some time. Unfortunately, I don’t think they recognize that this is a currency crisis and that’s why the risks in the market remain abnormally elevated.”
I am going to buy riot gear.
