Just a few more steps and we’re there. I’m not quite sure where "there" is but we’ve been told it’s a happy, happy place full of well-capitalized banks, low interest rates and low inflation as far as the eye can see and all we have to do, according to our friends at the EU, is take a simple leap of faith with them.
Sound good to you? I’m not going to re-hash the situation, that was done brilliantly in Stock World Weekly this weekend (and boy does it look good on the IPad!). What we need to do to get is through THIS week is to get our fingers on the pulse of the rumor mill, which is still grinding out market-moving stories at a mile a minute, the last one being that Sarkozy’s classic tirade toward the UK yesterday ("We’re sick of you criticising us and telling us what to do … you didn’t want to join (the euro) and now you want to interfere in our meetings") was merely a ploy to line up votes for UK PM David Cameron to JOIN the EU (because there is nothing the English like doing better than pissing off the French).
Meanwhile, Bank of France Governor Christian Noyer says French lenders would need less than a €10B capital raise to bring their ratios up to the 9% level agreed to by EU FMs over the weekend. He claims this can be done privately without state assistance. Whuck??? That is not at all what we’ve been hearing from the media nor is that in any way indicated by the 30-year bond spread, where France is paying 124 bps more than Germany to borrow money.
SELLSELLSELL you say? NONONO I say because what happened in July of 2009? STIMULUS!!! We LOVE stimulus, don’t we? At the…
