THE MORNING AFTER PILL – AT 10:36 A.M. ET:  Do you sometimes get the feeling that some "investors" and "financial analysts" are just children playing in a sandbox?  How else do you explain the childlike reaction to yesterday's dramatic European bailout, and the reversal today?  It's like a kid deciding that he doesn't like the red bike after all.

Yesterday the international markets went into ecstasy over a European bailout plan to salvage the Greek economy and provide some protection for others that may be in trouble of falling off the cliff.

This morning the financial geniuses woke up to realize that the bailout may not be enough, that the nations themselves may not do what's asked of them, and that we may see this movie again, with a much higher price of admission.  Question:  Why couldn't all these money wizards figure this out yesterday?

(Reuters) - Germany's cabinet approved the biggest national contribution to a $1 trillion emergency rescue package intended to stabilize the euro as global markets sobered up after Monday's euphoria.

Relief at the European Union's bold move to restore investor confidence gave way on Tuesday to doubts about whether weaker euro zone economies can meet their part of the bargain and deliver drastic debt cuts, driving the euro and stocks lower.

Might have thought of that a little earlier, don't you think?

The 16-nation single currency, which surged above $1.30 early on Monday, slipped below $1.27 as traders weighed debt worries and a perceived blow to the European Central Bank's independence in its weekend policy reversal to start buying euro zone government bonds.

The emergency plan -- the biggest since G20 leaders threw money at the global economy following the collapse of Lehman Brothers in 2008 -- wowed markets with its sheer size and sparked a spectacular rally in world stocks and the euro.

Yet stock and bond markets turned cautious when they reopened for business in Asia and Europe on Tuesday, with investors concerned that the plan was not a long-term solution to problems plaguing the 11-year old single currency area.

COMMENT:  Must be fun being a financial analyst.  You can change your mind overnight and still get the big bonus.  What a life.

May 10, 2010