In the morning I thought that there would be no such a fool investor who would be willing to put his money into European debt and here we go! China claimed that they would step in and buy European bonds. Thus I do not know who is a bigger fool here. Or maybe China needs to get rid of some dollars, who knows, but definitely this is comic or tragicomic. I really wonder what Chinese investors or the country itself gets by buying bonds or putting their money into a fund bailing out European countries which will go bankrupt. Am I missing something?

The leaders of EU are debating how to bankrupt Greece effectively and without a sudden shock. They are proposing that banks should write off 60% of Greek debt, but bankers are willing to accept only 40%. But will this write off solve Greek problem?

Partially. It would definitely help Greece to balance their budget, but it doesn’t solve it. Greece will still be lacking money to finance their mandatory expenses and with bankruptcy who will be willing to lend them more money? So even with writing off its current debt, the country will still struggle to get money to finance its bureaucracy, social expenses, healthcare, etc. (what a socialism in there!).

This morning I checked the premarket data to see what is driving or will be driving the market in the morning. And I found an article on CNN Stocks: Optimistic about Europe … for now.

So investors are optimistic this morning about Europe leaders who are going to meet today and later on they should announce a “comprehensive plan”.

Strong words. Really.

European government heads will be meeting Wednesday, after pledging to unveil a comprehensive plan to tackle the region’s debt crisis.

An official announcement isn’t expected until later in the day.

“We all expect the plan is going to happen. The question is — is it really going to be big enough to make a dent?” said Mark Lamkin, founder and president of Lamkin Wealth Management in Louisville, KY

What do you think this plan would be about? What are those optimistic investors expecting? Are they that naive to think that the leaders meet and suddenly the debt disappear?

All they come up with is providing guarantees to irresponsible banks who were buying bad bonds (and possibly knowing it) and now they ask the Governments for bailout, but who will be those paying? You guess it, the tax payers.

And I cannot belief that there are some investors out there who believe in this and are optimistic about it.