Over the past month, the European leadership, which includes Merkel, Sarkozy, Trichet, and Junker, have tossed rumors at the market of a bailout, settlement, or plan to deal with the ongoing debt crisis overwhelming the West.
However, it appears that these rumors never become substantiated, and in many cases, contradict one another, which adds to the confusion. The only real conclusion investors and the public can make of this is:
Europe has no idea at all on how to deal with the crisis, and they are simply trying to kick the can down the road for as long as possible.
Look at these two diametrically opposed articles on Bloomberg yesterday.
The question isn't which article is correct. The realization is that Sarkozy and Merkel are clueless and should keep their opinions to themselves... for the more they speak, the more Europe burns.