This is the title of a great discussion of the European economic crisis from The Economist. I thought they had a beautiful summary tagline: “Europeans fumble around for painless solutions to their economic crisis.”
It’s important reading because it’s not just Europe that is looking for a painless solution. Everyone wants a painless solution. The only problem is that there is always a cost, hidden or obvious. Market participants are not stupid and this always gets figured out. Only politicians believe in the tooth fairy.
Markets express their opinion with price change. Price changes cause changes in relative strength between asset classes. There’s no mystery about how markets work.
Source: moviegoods.com
