The "wedge" between 'market-perception' and economic reality, that we discussed in detail last night [8], driven by Merkel's enabling of Draghi's excess, has never been more extreme. As Elliott's Paul Singer noted, things are indeed "wrong and dangerous" [9] when politicians are proclaiming victories, stocks are at record highs, bonds risk is at multi-year lows and yet unemployment rates (most specifically among the under-25 youth of the region) soars back to record highs. A stunning 24.1% of young people across the entire euro-zone is unemployed; Spain (having 'exited' its nominal recession) stands at a record 56.5% youth unemployment, topped only by Greece's mind-numbing 57.3% youth unemployment record (as Greek bond yields hit 3 year lows). France and Italy also hit record highs and Cyprus' broad unemployment level has exploded from 28% a year ago to 43% now. Amid all of this, Germany's youth unemployment continues to improve to a 20 year low. Recipe for disaster? [10]
[11]
Data: Bloomberg