Of Beggars, Choosers, Unemployment, And Bailouts In Europe

"The problems of a group of 17 different economies that are growing further apart - all functioning under the same currency - will not be solved by any actions taken by the ECB" is how Stratfor's Adriano Bosoni describes the can-kicking that has once again become the euro-zone this summer. From the systemically rising and drastically desperate unemployment rates around the Southern nations, which are not benefiting from the typical seasonal advantages of the Summer tourist trade (since both recessionary contraction of spending and fear of violence are keeping northern Europeans at home); to the Madrid-to-Rome 'demands' in the face of Berlin's clear message, Bosoni notes the ironic fact that 'aid' is there (as Draghi pointed out today) if it is asked for (and an MoU is signed) but both Spain and Italy know full well that the mere act of signing that Memorandum signals the market that a full sovereign bailout is closer at hand and will further steepen yield curves and shrink market access (which in our view is now gone for anything but short-duration issuance in Spain). A succinct 'status update' on where Europe stands.