The EU is busy this morning crying and throwing a tantrum, as pesky credit rating agencies looking out for the well being of their clients are obviously biased. Xenophobia is rampant in the world today, you see. Never mind that a decade of indulging in comfortable living, coupled with no ability or desire to pay back fair value for their loans, puts the rating agencies squarly in the right.
The next step will be a massive campaign to rally the “workers”, marching on those evil financial institutions for all the hardships they didn’t bring on Europe when they stopped helping out.
In the immortal words of Led Zeppelin, The Song Remains The Same.
And yet, despite this; despite China going into a Red Storm meltdown with absurd inflation bringing rioting to the front and center; despite further layoffs looming on the U.S. horizon and dollar strength…oil and equity prices seem to want to move higher.
I don’t understand it, but I know better than to fight it. I’ll hold steady, mostly long my safe assets with strategic shorts in oil and energy, just in case it all blows up. But, looking at how the market can rally off of last nights news, we are obviously going up.
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Ah, excellent. The market was just waiting for me to offer my credibility to its alter. Now that the blood has been offered, we can resume the sell off…
“I don’t understand it, but I know better than to fight it.” – this is my philosophy right now, but I just can’t buy anything at these levels…of course this just gets harder as things keep marching; however I’ve seen this story before and it usually doesn’t end well. If we consolidate long enough I will consider the long side, but realistically we should be 80-120 points lower on the S&P right now.
The European baby shit today is another great example of why the extreme pain needs to be felt before anybody will really get the message.
The only counter-argument I could make is that our rating agencies really should be downgrading every city and state in the US along with Europe…so from that perspective, I suppose they actually are biased.
Oh absolutely, they should be downgrading U.S. cities like it’s going out of style.
However, that’s not going to magically work out better for Europe. They still get what’s coming to them.