this is an adventure

Expectations post-rescue: “Markets are thus trying to make sense of a world in which political and regulatory risks are balanced by strong profits growth and low interest rates. No wonder they have been volatile… After a long period of calm, the VIX has soared again. Investors are clearly expecting a bumpy ride.”

Why aren’t we talking about this? “The House will soon vote on a new version of the “tax extenders+ bill,” which is formally labeled H.R. 4213, The American Jobs and Closing Tax Loopholes Act of 2010. Must … not … call it … Stimulus IV. A better name might be The Hypocrisy Act of 2010.”

Eurozone failure: “Member states seeking admission were required to have a budget deficit level of less than 3 percent of GDP and a debt ratio of less than 60 percent of GDP. To meet this requirement, some governments employed what might be generously described as “creative accounting” or simply misrepresented their fiscal position.”

“The euro’s steady decline on foreign exchange markets in recent weeks suggests much skepticism that Europe can win its gamble. Even if it does, the spending cuts and tax increases will dampen already-low economic growth. Europe’s contribution to the global recovery will be meager. But if the gamble fails, much worse may lie ahead.”