How much longer Germany and France can keep this smoke and mirrors game going is anyone's guess. What I do know is that Germany cannot do it on its own. Once the credit markets turn on France, like they nearly did last November, the situation will then be too severe to tame with any intervention.

They have to actually address the solvency issues of Spain and Italy at some point, instead of just putting it off until another day with liquidity-inducing measures, but like here in the United States, the political and social will to make the tough decisions and take the medicine just isn't there.

Remember the Goldman Sachs call a week ago? And what Karl said at the time -

Quote:

A challenging economic environment has made Goldman Sachs Group Inc. analyst Noah Weisberger recommend shorting the S&P 500, or betting on further declines. He has a target of 1,285, or 3.1 percent below yesterday’s close.

“With incremental U.S. monetary policy on hold, the market will need to confront a deteriorating growth picture near term,” Weisberger wrote.

Genesis wrote..

Listening to anything Goldman Sachs says in a place where "ordinary people" can hear it has been a historically awful decision, often leading to you getting your face ripped off by the resulting move in the opposite direction.

Uh huh! Interesting timing for their call. And then yesterday "they" were trying to take the market down on the Supreme Court Ruling and the $9 Billion JPM revelation, but we barely closed down - which was a massive tip off. I also noticed a ****load of 133 and 134 SPY quarterly (expiring now) call buying yesterday....

Bear market rally? Going to feel this one at the pump.

"My master made me this collar, he is a good and smart master and he made me this collar so that I may talk--SQUIRREL!"
<Dug goes ADHD watching for squirrel>

Are you sure the Germans caved? Or did they place say a trillion dollar bet on Italy during the soccer match? Squirrel!

Donethat wrote..

Bear market rally? Going to feel this one at the pump.

According to the best HWB technical analysis I've seen, we're right on the line between the bear trend being blown and a big FAIL in the direction of Lucifer's open maw. To the pip on my chart. I wouldn't put money on either which way right now.