Is Bernanke pulling Greece out of the crisis?
For the first time in a couple of weeks I have felt kind of optimistic today. It might actually be that the Federal Reserve and the Bank of Japan will not repeat the mistakes of 1937 - at least I am hopefully we have learned something from 1937. So I think we need an optimistic graph for the weekend. Take a look atthe European Commission's Sentiment Indicator for the Greek economy. The rebound since September - when the Federal Reserve effectively announced the Evans rule - has truly been remarkable. Of course this might also be the impact of Draghi's comment that he would do "whatever it takes" to save the euro (in July) or the combinded efforts of Prime Minister Abe and BoJ chief Kuroda to get Japan out of the deflationary trap. It could of course also be that years of austerity are finally paying off, but I find that to be extremely unlikely. Not matter what this is probably the most positive graph we have seen on the Greek economy in years. Lets hope for the sake of the Greek people and the European economy that there will be a lot more graphs like that in the future.