This Must Be Groundhog Week

Spanish bond yields have declined, and it was reported that the Eurozone deal must be in vogue this weekend. It seems very much like last weekend, which was followed by an immediate inundation widespread criticism in the press of the Eurozone debt situation, along with the Federal Reserve announcing the obsolescent Operation Twist.

If MF Global could have lasted another couple of months to see this situation, then there would not have been a bankruptcy. But just as in the case of Lehman bros., the speculation was they were hung out to dry. In the recent week, a bailout did occur to prevent another bankruptcy. It seems to me that the U.S. had the MF Global bankruptcy, yet none occurred in the Eurozone.

Conventional wisdom maintains that the governments are defaulting when the banks are failing, but when the bailouts come, the banks get the bailouts and the population gets the austerity measures.

http://www.businessinsider.com/why-the-european-debt-crisis-might-be-over-2011-12