The Worse, The Better

Come up off your color chart
I know where you're coming from
--Blondie

Many sovereign Euro bonds (e.g., Spain, Italy, and France) continued to get smoked last nite. Losses in European bourses, however, were muted.

Here, mkt sold to near flat after the open, then spent the rest of the day marching higher to the tune of 1%+. Felt again like black boxes gaming other black boxes in short squeeze format.

An alternative explanation is the perverse logic that the worse things get in Europe, the more likely that central banks will intervene.

Consummate moral hazard.

position in SPX