It seems like the never-ending story of the summer has been either Greece defaulting, or some other European full-scale emergency. Over, and over again the so-called “smart crowd” has slathered onto every available camera lens how they understand the issues. How they are fully aware on how these issues are to be resolved. And how the outcome is more likely than not to unfold. What I would like to have others remember is that these are the same gatherings of intelligentsia that spewed their thoughts over the preceding 3 years that the Euro was going to replace the US Dollar, and if you wanted to feel safe, you needed to buy into the concept of the EU experiment, and on, and on. All of it has been rubbish in my opinion, but now my conjecture is moving more towards facts.
When the Euro was skyrocketing as the US Dollar was falling I wrote many articles calling attention that it had nothing to do with the strength of the Euro, but had everything to do with Federal Reserve policies crushing the intrinsic value of the dollar making stocks appear more valuable. (appear is the operative word) I also wrote, and spoke on the subject concerning the Euro. I believed then as I believe now that the unprecedented rise was not due to anything more than a temporary correlated move. I also opined that in fact the Euro was in for deep trouble and would probably not exist in the near future as it is known today. And here we are once again with the same “smart crowd” coating the camera lenses with spittle as they try to contain their excitement for a rally in the stock market as proof of just how much of a collection of genius their brothel of cohorts are. For myself I can ignore and disdain these curmudgeon’s. I hope you can also because they can be dangerous to your wallet in more ways than one.
Just a little over a week ago the markets seemed for many that they were falling once again into the abyss. Now just 10 days later this same crowd is claiming “smooth sailing” because Europe is coming out with a fix for its crippling problems. This is coming from the same crowd that said previously there weren’t any problems to worry about. Now they’re saying that the newest promise is that the previous promises are going to be enacted and that is what’s causing everything to now be rosy? (yes pun intended) Please, enough already!
Granted the meteoric rise over the last couple weeks has been breath-taking. Historic moves are made nearly every month since the 2008 plunge. (That alone should make you suspect of every move up or down in the financial markets) Just this last move had its first 5 day rally entered into the books because its velocity had only been seen 4 other times since the 1930’s. (and that’s just last weeks entry into the records) I am in the lone camp that most of the subsequent move was powered from the phenom known as Short Covering. But you won’t hear anything to that effect from the brothel of analysts because unless they get you into their house of ill repute they don’t get paid.
It is quite possible that Europe gets its act together over the weekend. (although they changed the drop dead date 11 times since they announced it 14 days ago) If they do there really will be a chance, and I mean a chance for a collective catching of ones breath. However if they come away with just another statement of a promise to do the things that they promised to do earlier, than it’ll take a whole lot more than flowers to fix this romance.
Even worse if the florist decides this time not to accept the checks because ones for the previous flowers have yet to clear.
© 2011 Mark St.Cyr All Rights Reserved