It's been strange to see so much fear about Euro zone debt woes when everyone single person on planet Earth knew, and I mean KNEW, some kind of work around was always going to happen. I guess the pressure needed to build enough to get the ECB and crew to make a little pee pee in their pants. Plenty of rumors out tonight about a silly big bailout package and it's party time freak out all over.
Business Insider has a rundown here:
Futures Are Exploding Higher After Weekend Talk Of Mega-Bailouts And Stability Pacts
Funny thing is it was some obscure Italian paper, La Stampa, that broke the news but catch this line:
The euro rose after Italian daily La Stampa said the International Monetary Fund is preparing a 600- billion euro ($794 billion) loan for Italy in case the debt crisis worsens, without saying where it got the information.This is rich.
Adding fuel to the free money Trillion dollar roll is news the FED, wait for it, will buy another lump of mortgage paper:
Dealers See Fed Buying $545 Billion Mortgage Bonds in Third Ease
So I am supposed to say stuff like "trade what you see", "don't fight the FED", "the market is what the market is" or some other platitude but I just can't get into it. This is really stupid stuff.
I don't even want to discuss it tonight. More monkey games of throwing bananas. Over reaction and wasted efforts all around. Markets will never have fair pricing of much of anything (debt, credit, stocks, name it) with all the interventions coming all the time. It's all becoming false, a false market built on assumed caps and bailouts. I am getting bored, really.
New Outside the (Cardboard) Box Post
Long time readers may remember my friend Tom of the North and his wonderful work on his site. Tom has a new post up and it's pure genius. Required reading for Sunday night:
Supercommittee Reorients For Success
Sample to get you going on over there:
Washington, D.C. – As their budget cutting duties are winding down with the recently announced and widely anticipated stalemate, sources close to the process are reporting that the Congressional Supercommittee is in advanced negotiations with a large investment management company, possibly Black Rock, to form a new investment vehicle directly managed by the Supercommittee itself. Tentatively named the Supercommittee High Yield Terran Equity Fund (SHYTE Fund), the fund structure would allow its Supercommittee managers to invest in any global asset or asset class where a Supercommittee member/member of Congress/SHYTE Fund investment manager has the ability to directly influence the performance of the asset or asset class through legislative action, or has privileged access to information regarding a particular asset or asset class that would constitute an iron-clad trading advantage.The whole article is excellent. Thanks Tom.
Have a good night.