The coming failure of the euro zone bailout deal

Rick Moran
Liam Halligan writing at the Telegraph is not at all convinced that European leaders have made progress in solving the debt crisis. In fact, he's downright pessimistic: Last week's eurozone "agreement", for all the related fanfare, was a case in point. Far from making the situation clearer, allowing investors to make considered assessments, this latest announcement made Western Europe's grotesque debt crisis even more acute, sowing further infectious spores of confusion. The deal itself, unveiled dramatically in the early hours of Thursday, was met with the now obligatory "relief rally". The FTSE All-World equity index soared 4.1pc, helped by signs of renewed US economic growth. European bank shares spiked no less than 12pc on Thursday, as traders recognised, for all the official obfuscation, the latest dollop of government largesse. By late Thursday, though, and certainly on Friday, the warning signs were there. Global bond markets, by character more sober and smarter than the...(Read Full Post)

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