by mk

So, the Euro Crisis is going to be effectively put on the back burner over the next nine months or so, or at least that is the hope in Berlin. Naturally there are no shortage of loose cannons that can come into play to make this hope just another example of what Lagarde calls “wishful thinking”, but even assuming everyone gets the time-out people are hoping for, just what is going to happen when the German election milestone is passed? To the external observer, it does look like fund managers from across the planet are being told one thing (that Germany will then take the bold steps which are so evidently needed to shore up the common currency) while German voters will be voting in the exact opposite belief, even to the extent perhaps of being lead to think that the OMT bond buying programme is merely temporary. So someone is going to be very badly disappointed, and not long from now market participants will have to start placing their bets on who they think that someone is going to be.