Market Euphoria Fades Fast

Today's news gives us some further hints as to how far down the Ponzi scheme line we actually are.

If you turned on the news this morning at 7 AM you would have seen Good Morning America reporting that markets were "going up everywhere around the world" based on the news that Spain was going to get a bail out.

"Yea!!!!  Someone is going to give Spain some money so they can kick the can down the road for another few months!!!  Let's party and buy some growth stocks because this morning we are so bullish about the wisdom present in the financial arena!!  We knew someone would figure out this financial thing!"

But after everyone came back from lunch, someone must have asked the fateful question, "Hey....who is giving the money to Spain...and where did they get that money?  Does Spain have to pay it back...or is this just more free money someone printed that is going to be worthless someday?"

And once the questions started being asked...the excitement of Spain's bailout had turned to anxiety...and the DOW fell 145 points.

It took less than half a day for the markets to give Spain's bailout the thumbs down. On one level, that is unfair: Unlike previous bailouts, this one came at the end of a relatively calm week, rather than in response to a full-blown panic. And for once, the euro zone is putting the sort of money on the table—as much as €100 billion ($125.2 billion)—that the market has been demanding, raising hopes Madrid now will clean up its banking system once and for all.

But there are too many unanswered questions. How much capital will actually be provided? Which banks will need to be recapitalized? How will the process be managed? The answers won't be known until two independent valuation experts have reported at the end of June.

Here;  http://online.wsj.com/article/SB10001424052702303444204577460783334586896.html

Yep, simply too many unanswered questions.  Financial markets HATE uncertainty....and lots of folks are looking at the naked emperor and being told he is wearing beautiful clothing...but wondering when someone is going to state the obvious and proclaim that the emperor has no clothes. 

When everyone does realize that Europe is naked....then the crisis could really kick into high gear.