June 17, 2011
The euro has rallied to nearly $1.43, bringing US stocks with it, on the latest swift kick of Greece’s can down the road.
But nobody believes this is the end of the story, not even close.
Michael Darda, chief economist at MKM Partners, who was a pretty good chronicler of the 2008 crisis and 2009 recovery in the US, explained in a note today what he’ll need to see before he thinks the eurozone is all clear.
Mainly, he thinks credit conditions are way too tight, and that the ECB will soon have to not only give up any thoughts of raising rates, but take back its latest rate increase, too.
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