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Connect the dots: If ECB buys Spanish/Italian bonds, they do QE3 for US, so euro rallies and dollar drops. Lower dollar, higher stocks.
Connect the dots: If ECB buys Spanish/Italian bonds, they do QE3 for US, so euro rallies and dollar drops. Lower dollar, higher stocks.
“Considering the momentum in which the market went down over the last week, it is very unlikely, if history is any guide, that this isn’t going to take a while to bottom out,” Greenspan said on NBC’s “Meet the Press” program. “So the initial reaction in my judgment is going to be negative.”
DougKass Douglas Kass
according to sources the ecb is ready to bring out the bazookas tonite to buy spanish and italian debt http://on.wsj.com/rdwZfo
http://ibankcoin.com/flyblog/2011/08/07/all-eyes-on-europe/
Israeli and Saudi markets are down sharply. I don’t care about that. There are rumors floating that the ECB will begin massive buying of Spanish and Italian bonds. Should that come to fruition, this market is going to explode to the upside, skull-fucking every single short within a 50 mile radius of me, as well as worldwide, then lighting their craniums on fire. On the contrary, if nothing is done, so are we.
I am not being melodramatic by stating the obvious, am I? Naturally, the S&P downgrade is irrelevant, as it will not affect our borrowing costs. The main issue is Europe. Having said that, we all know how cheap stocks are and how oversold the markets are at this point in time. But we’re not trading on the fundies here. Let’s wait and see what comes out of Europe. And, don’t forget, THE BEARDED CLAM wishes to have a word or two this Tuesday, at the infamous JACKSON HOLE. All sorts of fabulously gay shit might happen this week.
Good comments today from Warren Mosler. Given S&P’s disastrous handling of this situation, Moody’s has an opportunity to save some face and look like the more credible agency here:
wsjbreakingnews WSJ Breaking News
Breaking: The European Central Bank is weighing buying Italian and Spanish bonds on a massive scale. More to come athttp://wsj.com
Read more: http://www.businessinsider.com/buffett-in-omaha-the-us-is-still-triple-a-2011-8#ixzz1UFALPBLQ
The United States takes in $2.2 trillion a year and spends $3.7 trillion. That math does not make any sense and will need to be addressed if the Unites States is going to survive as we have known it. Europe is in a bit of a pickle. The European Union is made up of multiple nations, some produce goods and some don't. The European Union looks like a test project that simply went bad. Eventually, the European Union Union will have to be broken up. Countries such as Germany that actually produce and manufacture products which consumers want cannot keep the Euro-zone together single handedly. Spain, Italy, and even France are simply too big to bail out. The best thing for the world would be a European default. This will come in the next couple of years.
These stock markets are very oversold at this time. Anytime the Dow Jones Industrial Average declines by over 500.0 points in a single trading day on massive volume it will generally mark short term exhaustion selling. Therefore, it is possible to see small bounces in this market at this time. There has been a lot of technical damage done over the past ten trading days. Traders must now watch for the aftershocks that will occur over the next few weeks.
