My thoughts on the European bailout.
As the smoke settles after last week's fiasco and the stock market attempts to climb out of a historic point drop we are left to ponder what awaits us. Little know fact about last week's one day swoon, currencies were selling off hard. Looks like someone realized that the inflationary pyramid being constructed by our central banks will collapse sooner or later. In fact the Euro was flirting with multi-month lows before the famous "fat finger" that sent the Dow Jones Industrial into a virtual melt down. Why was the Euro selling off? Well that is rather straight forward and I am glad you asked. You see, shortly before this swoon the Greek situation was "resolved'. I use the term loosely of course, because essentially the European Central Bank pledged to buy debt even if the world agreed that the debt's quality was deteriorating. A quality of debt is measured by the ability of the debtor in paying back what he borrows. This move was clever because