Zero Hedge notes that European banks are betting against the beleaguered euro. “Zero Hedge has received confirmation that several of the largest French banks are now actively shorting the euro to take advantage of globalized moral hazard, which with every ensuing bailout does nothing but make the bonuses of French FX traders surge.”
In other words, the very banks the EU plans to bailout in part with U.S. taxpayer money (or tax payer long term debt) via the IMF are placing bets against the survival of Europe.
In response to the almost instantaneous cynicism about the effectiveness of throwing a trillion bucks down the black hole of engineered debt, investors are smartly moving into gold. Gold hit a five month high today and moved to within $10 of its December record peak in response to eurozone risk aversion.