Thursday, November 17, 2011

Clash of the Titans

Continued selling on light volume.  Dow down 134.33 to close at 11771.26.  S&P down 20.69 to close at 1216.22.  Surprisingly strong support for the S&P at 1209.

European fears are growing.  The crisis is spinning out of control, and the politicians continue to be way behind finding any credible solutions.


Spain's finance minister Elena Salgado says that the ECB must keep on supporting government bonds by buying them until some other instrument is put in place.  Well, the problem is that the Germany has been adamant that the ECB doesn't want to be the lender of last resortFrance and Germany are clashing on the ECB's rescue roleThe IMF has already expressed that it doesn't want to be in this role as well.  So, I guess nobody's going to do it.  Merkel has already been reluctant to do Eurobonds, and these would take too much time to develop and implement.  The EFSF is nowhere in sight or sound.

Although we have new governments in Greece and Italy, protesters in both countries took the streets today to protest austerity measures, again. In New York, Occupy Wall Street (OWS) protestors took to the streets marching on the NYSE.  There was literally blood in the streets, as protestors clashed with police.  Protestors were injured, as well as the police.

In the US, there are rumors that the Super Committee is deadlocked again.  In France, there are rumors the actual downgrade of the AAA rating is imminent, for real this time.

So, the global economy is unraveling, and there are no credible solutions in the US or across the pond in Europe.  Politicians are scratching their heads while Rome burns.  It seems that the only time any real action will take place is when it's already too late and the situation has reached catastrophic proportions.

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