Compare and contrast the following headlines:
Really nothing much to say here.
Let's focus on some of the salient paragraphs from the two articles:
German Chancellor Angela Merkel rallied European leaders to help Greece deal with its debt crisis. She still hasn’t sold her political allies at home on the idea.
Says Bloomberg. Odd, because over across the Atlantic, we read:
Angela Merkel, the German chancellor, mounted stiff resistance tonight to any swift bailout of Greece, as a rift opened up between European capitals over how best to tackle the risks posed to the euro.
Little point in copying and pasting anything else. We already know that the "bailout" is not going to happen most likely because the EU "leaders" will never be able to agree on a cohesive plan that does not cause mass revolts (you see Europeans may be anything Americans like to call them, but they sure can rally the troops when needed). In other news Goldman compares the Greek bailout to Paulson's Bazooka:
“It’s like Paulson’s bazooka,” said Nielsen, Goldman Sachs’s chief European economist in London. “It’s a difficult balancing act -- saying something comforting to the market without committing money and hoping the market will take their word for it.”
It appears Erik is a fan: some time prior we posted:
It is a clear indication that just like Paulson said in July 2008, Europe is preparing to take out the "bazooka" and deal with the elephant in the room. However, just as in 2008, the EU will very soon learn, and demonstrate to the market, that not only is there no bazooka, but when you don't have the facility of access to the reserve currency printer, you are, well, fornicated.
Regardless of the shared vivid imagery, the bazooka just jammed. Did these people ever buy Paulson's highly objective memoirs? Or even read the courtesy copy?
Bazookas, elephants, propaganda, revolutions.... It is shaping up to be a fun Friday.