Crowd Control and the Euro Zone

Stock markets around the world were jubilant following the announcement last Wednesday of an agreement among the euro zone countries on dealing with the sovereign debt crisis. Prices soared, presumably in the view that the risk that of a Lehman-type meltdown following a disorderly default had been put behind them.

While there are some reasons to believe that this could be true, there are also serious grounds for skepticism. It is also important to recognize that this deal will almost certainly not be good news for people across the euro zone.