I certainly don't believe Draghi's "do whatever it takes" market intervention resolved Europe's deep structural problems. I don't even think it "bought time." Loose "money" instead bought another Bubble. The Draghi ECB (in concert with the Bernanke Fed and Kuroda BOJ) forced sweeping short covering of bearish bets throughout Europe -- and then incentivized leveraged speculation throughout the euro zone. The resulting historic collapse in European periphery yields was nothing short of miraculous. Unfortunately, this market moonshot may have enriched the speculator community but it did little to ameliorate structural maladjustment.''


It may be early to get too excited about contagion effects. Yet the colossal global leveraged speculating community is a likely transmission mechanism from Portuguese debt to the world's risk markets. Europe's market Bubbles would appears at this point a high-risk proposition.

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