No money printing. Instead fiscal concentration at the EU level. EU now has oversight on national budgets.
Germany has won.
UK is the only country which is not participating in the new mechanism. The other 26 countries welcome their new bureaucrat masters in Brussels.
In the medium term this will be good for the Euro.
The Europeans are doing the cuts, US and UK are printing.
I'm not sure this is hopium. I think we need to acknowledge that this was bad news and the market ignored it. At the same time, short interest is pretty damn high for the Euro and the general stock market.
I'm not saying get bullish here.. I'm just saying that typically when I trade a stock and they disappoint on their numbers but trades really well, we might have missed something. Usually, that's when you get big moves. Who knows though.. maybe this will give political cover to the US, Japan or China to give that $50 billion to the IMF? Now that is hopium.
I think it will fail because after a few days of discussion, folks will realize just how much of their sovereignty they stand to lose, and all so the banksters can be made whole for a little while longer. This is financial engineering on a never before tried scale.
I have given up on trying to figure out what happens when Europe does/does not do X, and how that propels our stock market. It seems, indeed, that bad news is treated as good, so the market goes up.
Also, I do not know well enough the internals of how the markets work, nor how the players in the ¨Big Club¨ (which sure as hell does not include me) buy/sell/manipulate all of this.
There have to be many, many more like me! Just saying, fuggedaboutit, just get me OUT and get me GOLD!
I have seen a few (at ZH, etc.) make a case for 50/50 (gold/cash FRNs) at least for the short term. When something BIG finally starts happening, whether inflationary or deflationary, the gold or the cash will rise MORE in value than the other will decline. That makes some sense.
In 2012 I am going to be liquidating more paper, buying more PMs, stocking up on more cash $$$ and beefing up my guns & ammo collection. It´s going to be an interesting year, maybe the most interesting year EVER!
The summit they are at could have lasted all weekend. The fact that they already know the score after just 10 hours of the first day just helps us see through the smoke, imo. The market is just treading water until the real bad (or good) news comes out over the weekend that it needs to hear in order to make it's decision. That is my take on it.
There won't be good news. Just wanted to make sure I wasn't mistaken for a hopium smoker.
I have to say that after reading extensively about this subject all morning [while cleverly simulating work] I have come to the conclusion the EU cannot and should not be saved. It is going to be impossible to sustain the public opinion required to strip nations of their sovereignty and force them to eat the mistakes of banks and failed nation states. The amount of debt to be rolled over worldwide next year is absolutely staggering. It really is unpayable. in fact, more and more countries are going to find that simply paying the interest on sovereign debt has become too much of a burden to bear any longer. While they may be able to posture and obfuscate their way through the end of this year, there is no way in hell it can last through next year. The jig is up, and the shitstorm is on the horizon.
Buckle up and be sure you're wearing those big-boy pants, 'cause this shit is going to get real in one quick hurry. No warning will be given.
So it looks like the two o'clock drift is starting. I just don't see folks heading in to the weekend with a lot of risk on the books. I'm going out on a limb and predicting [on balls alone, not fundamentals or valid information] a late session sell off. I think between 3:00 and 3:30 est. Volume sucks and everyone just wants to get the hell out of there for the weekend.
It appears that they are setting up for a ramp job. Of course I know this because I rely entirely on my Spidey Sense on these things. Of course, it could be the pump up and a massive end-of-session dump. Either way, this is better than porno. Well........almost.