The “wedge” between ‘market-perception’ and economic reality, that we discussed in detail last night, driven by Merkel’s enabling of Draghi’s excess, has never been more extreme. As Elliott’s Paul Singer noted, things are indeed “wrong and dangerous” when politicians are proclaiming victories, stocks are at record highs, bonds risk is at multi-year lows and yet unemployment rates (most specifically among the under-25 youth of the region) soars back to record highs. A stunning 24.1% of young people across the entire euro-zone is unemployed; Spain (having ‘exited’ its nominal recession) stands at a record 56.5% youth unemployment, topped only by Greece’s mind-numbing 57.3% youth unemployment record (as Greek bond yields hit 3 year lows). France and Italy also hit record highs and Cyprus’ broad unemployment level has exploded from 28% a year ago to 43% now. Amid all of this, Germany’s youth unemployment continues to improve to a 20 year low. Recipe for disaster?