The Kroog Versus The Eurovision Bailout Contest

Dow up 400 at one point, now up 350ish.  Almost put back the carnage from Thursday.  Almost.  Krugman weighs in on the bounciness coefficient of the Dead Cat in question:

So there’s something substantive here; it’s not just a matter of buying time during which nothing good will happen.

That said, I wonder about magnitudes. I’m sure that the ECB has no intention, even now, of letting inflation rise 200 basis points (even though it should welcome that development.) And Greece, still the epicenter of the crisis, doesn’t gain much from the credit lines. So does a drop of more than 500 basis points in the yield on Greek 10-years make sense? I don’t think so.

The good news here is that for the first time in this crisis, European policy makers have gotten ahead of the curve, acting more strongly than almost anyone expected. That’s a shock, and it has awed the markets. But I still don’t think it’s nearly enough.

Neither do I.  When this particular can of Monster Energy Drink wears off, the market's going to have a hell of a headache.