Yesterday, Slovakia decided to kill the EFSF, which would be a huge setback to ending the European crisis. One would expect markets to tank worldwide, but one would be wrong. Asia was up. Europe is up. Futures indicate our Dow will open up about 75 points.
Most experts assure us that Slovakia will replace their government and pass the law next week. While I hope that happens, it is a reminder that every step in fixing this crisis can be torpedoed by any one of seventeen nations.
Still, the stock market is becoming ever more sanguine about the risk and rising. The blinders must be exactly the right size? (The rising Euro is even more inexplicable. Does anybody believe the ECB will not decrease interest rates, which will depress the Euro?)
While the sky is definitely not falling, it is not rising either. Even if the market can see beyond the European crisis (which I doubt), can it also see the return of the debt debacle in only six weeks?