European Night’s DreamPosted: May 11, 2010
Let me start this post with two quotes from Shakespeare’s Midsummer Night’s Dream:
Swift as a shadow, short as any dream (Act I, Scene I)
When they next wake, all this derision
Shall seem a dream and fruitless vision (Act III, Scene II)
Shakespeare’s comedy came to my mind when I heard, at the end of the day, on the radio that «Wall Street closed down today amidst worries over European debt» (ok, it’s not a real quote, but it’s pretty closed of what was said)
Hearing this, I came to one precise question : was it a dream ?
But it is true : the euro is back as low as last Friday; the Dow Jones lost nearly 40 points, …
All this magical jump in stocks after an enormous rescue plan negotiated until late in the night… Gone… after just one day.
Are the market so prompt to enthusiasm, or got such a short memory ?
Does Europe need to put 1 trillion euros on the table everyday to keep the markets at rest ?