Reggie Middleton of Boom Bust Blog has a damned good (and comprehensively sourced) opinion piece at Zero Hedge giving the view that the “EU has made one of the largest policy blunders of modern times” which possibly explains the deceased kitty bounce in the graph on my previous post.

As a taster :

Yesterday I commented on the folly of promising big money to throw at a myriad variety of highly indebted nation without a central authority to enforce the structural change needed to actually cure the problems that created the need for the monies in the first place. See  The EU Has Set Up An Oppurtunistic Entry Point for Shorts Instead of Expressly Offering a Solution to the Pan-European Sovereign Debt Crisis! and What We Know About the Pan European Bailout Thus Far. The primary flaw, by far, that I perceive in this most grand of grand bailout schemes is that it is just that – a bailout, not a solution. Methinks the market is about to call the EU on their bluff pretty much along the same lines that I espoused above. For those subscribers who follow my belief that the ECB and EU leaders are making one of the largest policy blunders of modern times, this may be an opportunity to set up a short position that makes the Lehman Brothers’ debacle look like a day rally.

Well worth a read.

And when you are done there, could I suggest a trip over to Ronnie’s blog for his most interesting views on what the IMF is actually all about :

How the US Has Perfected the Use of Economic Imperialism to Extend Its Empire Through the Entire European Union! Warfare Is No Longer Merely a Matter of Bullets and Bombs!

The IMF, like many other international institutions, asserts that it has a “preferred creditor status”, and this has been a practiced convention in the past. Thus, IMF has de facto seniority rights over private creditors despite the fact that there is no legal or treaty-based foundation to support this claim and this seniority of rights for IMF will continue under the recent EU rescue plan announced as well as it has not been noted otherwise implicitly nor explicitly. This is the reason why Sarkozy said it is a said day when the EU has to accept a bailout from the IMF (aka, the US). The EU now, and truly, contains a significant parcel of debtor nations.

Excellent stuff.