Yes, the financial markets are near a panic. But the words used by EU politicians since Friday are very dangerous. They say, that markets will crash if they do not find a rescue package and a procedure to aid Euro member states. They seem to enforce a solution by escalating the wording. What, if they fail to deliver a convincing solution? Than the markets really will bring this system down?! Crazy-EU-bureaucrats.
What strikes me, is how this wording comes into life on Friday evening. The Bundestag confirms the rescue package and then in the evening - in my opinion without a compelling reason - the EU governments talked about a market raid on Monday if they fail to deliver a new package. The politicians produce more and more sunk cost effects for the society that allows them to do their unprecedented measures. Thats exactly the rhetoric used in the past to move a nation or society into the mud.
But short-term we "embrace" the short-squeeze ...
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