People close to the great Steve Jobs say he emitted a "reality distortion field." Taken from Gene Roddenberry's Star Trek, the term means the individual operates outside the constraints of the rest of us. For Jobs it was a management style that forced those around him to great things by his gravitational pull. For Europe, it is a dangerous game.
The capital markets continue to be tossed around by the empty headlines on the EZ plan. Wednesday is now the day of the rapture for Europe. The problem is only a very strong leader can produce a reality distortion field with enough heft to create positive results. The Germans are clearly the boss economically but have been reduced to last minute obstructionists. The majority of the tab is coming to their citizens and they can't distort that reality.
The US entities have had better success with the distortion. On some levels, Fed policy is a massive Reality Distortion Field. Games, like Op Twist, require participants to suspend disbelief and play along. If we get past Wednesday, watch for a trial balloon from Treasury on Friday. The Treasury Dept. is considering issuing a floating rate note (most likely a 3 year.) This would be the first new product since the introduction of the TIPS. After nearly 30 years of falling rates and FF at zero, the reality needs no distortion.