Is the Eurozone nearer a resolution to the crisis of debt, default and devaluation. These are the three stages that all countries could potentially go through. The future of the € is mired in the political future of the European Union. The paymasters and the supplicants will need to sort out if they want a transfer union (a political union de facto) of if they wish to kill the Project off. Afterall, most of the political class in Europe love the travelling to an undefined destination but never wished to actually arrive.
Germany, naturally, balks at consigning its financiers (the German taxpayer) to a future of misery, bailing out other Member States. Yet we hear opinion after opinion from analysts, the ECB and endebted beggars that decisive action is required. Otherwise, contagion ensues. When examined closely, the actions demanded involve more money and institutional reform that will guarantee that flow of money. Will such actions prevent contagion or merely stave off the inevitable? The latter. All the actions desired appear to be bailout sequelitis.
SO when Deutsche Bank argues that € hitting the wall = a 30% drop at least, we should prepare for the inevitable. Since the inevitable is here and earlier than expected.
