May brought the end of the “Merkozy” approach to the Euro crisis as the French voted out the austerity-loving Conservative and voted in Socialist President François Hollande. Under the new regime, France is now cozying up to its new anti-austerity, pro-money-printing allies,Italy and Spain. This makes sense when one considers that France’s economy is more akin to that of its southern neighbors than it is to the German economy. Strangely, the French bond market hasn’t figured this out just yet.
- David Einhorn, Greenlight Capital
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