Posted Sep 23, 2013 by Martin Armstrong
Merkel’s victory was really a signal that the Euro Crisis will not be over and that if anything the current direction of Europe will merely pick up speed downhill. The positive thing for the euro is that perhaps we can now go into hyper-drive to get this Sovereign Debt Crisis in the open. The likelihood of a grand coalition in Germany that will be able to change the German constitution if needed to allow euro bonds to get the crisis really properly fueled stripping Germans of their future is a given is now viable. However, this trashing of the German constitution will be more or less akin to trashing Glass-Steagall. It will not happen overnight but I expect it to gradually come on to the agenda. This will help to set the stage for the next crash.
The markets have not shown any really surge. It is more reminiscent of Buy the Rumor and Sell the News.