So the stock market is up in anticipation of Germany coming to the rescue with an enhanced euro-region rescue fund. Don't believe it, the evidence suggests Europe is heading down the gurgler.
The market is responding to the Germany parliament this week voting to increase its share of the loan guarantees to 211 billion euros, or about $287 billion, from 123 billion euros. But at the same time, Bloomberg reports that three out of four investors are now predicting that Europe will slide into a recession over the next 12 months and 72 per cent predict that one country will abandon the Euro within the next five years.
How bad is it? Reuters reports that Greece will run out of cash in October.
Then again, how could it be anything else? The Eurozone bailout fund amounts to 440 billion Euros. Italy's debt alone is close to 2 trillion Euros. And we're not even talking about Greece, Spain, Ireland and Portugal.
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