Governments, central banks & policy makers seem in control - only when social mood permits.
Even if Germany allows ECB intervention in the crisis (QE & 0% rates) this would ultimately prove to be deflationary (as it has in Japan & is now unfolding in the US). And harsh austerity measures currently forced upon debtor nations will lead to increased unemployment & lower economic growth which is also deflationary (Greece is already in a deflationary depression).
Stocks climbed the 'wall of worry' during October, even as uncertainty in Europe persisted. But as stocks slide again down the 'slope of hope' that exact same uncertainty will be blamed. That's because markets are not rational - they are emotional. It's all about the mood of the herd.
