More Unfounded Optimism In Europe

My view: 
At least Ken Rogoff calls it correctly when he says the bailout only gives Europe a few months before we see more problems. Certainly I agree with that!

Some of the points I disagree with:
A 90% debt to GDP level is too high to be sustainable in my opinion. 80% is probably the maximum sustainable level.
What was not discussed is the fact that nearly all western democracies are either at or above the 90% threshold Mr. Rogoff mentions.

And then, there is the absurdity of fixing a spending (debt) problem with even more spending (debt)! 

The stock market rejoices at the news and marches higher. Certainly higher than I expected.

At some point, perhaps in a few months, reality will set in once more leading to a declining market. 

Cash and gold still look good here to me.