Pies Served To S&P’s Face

The ride into the 9th floor was dark and murky, with black clouds pouring rain on my homeland. The office was dark when I entered it; the sudden flood of light that covered all but the corners of the room contrasted with the sink of illumination behind my window panes.

I swallowed down a quick breakfast of whatever morning breads I could lay my hand on. My other hand, whichever that was (for I was acting too inattentively to recall) raising my morning cup of coffee and cream to my lips in between bites. And over this meal of mine, my eyes have been busy scanning every news source I can come across.

This is absolutely comical; the market rally being laid at Standard & Poors feet. You could scarcely write such irony. I can’t tell if the market is rallying because it legitimately thinks it has a reason? Is it a coincidence, perhaps? Or are people remembering the U.S. downgrade outcome and piling in?

It doesn’t matter, because I’m getting the same rise out of it all the same. Really, even though I hate the rally and persist in betting against it (counting to 4 months now since my losses started; 7 months is more realistic, to be honest), I almost appreciate this rally. Standard & Poors pours their souls out there, taking a huge risk to face off against the irresponsible forces that really created them, and BAM! they immediately get socked in the face…not by governments, but by the very market they think they’re looking out for.

Can you imagine what S&P employees must be thinking this morning? Holy hell, I wish I could see their faces!

This is the most worthwhile money I’ve ever lost. You can’t buy entertainment like this at a movie. And besides, I’ll make it back soon enough. If only for today, I’d say losses well spent. I hope this ends with the EU banishing all credit rating agencies, thinking they’re being clever. At that moment, if the market were to utterly collapse, stiffing the EU just after totally destroying S&P’s credibility, then I’d have to sacrifice a hecatomb in its honor.

As funny as this is, don’t lose sight of the big picture. The “massive” rally in the euro is pushing it above 1.27. That’s a far cry from the 1.3 mark it was trading at as early as two weeks ago. The euro’s run to 1.28 has already broken down. And the commodity rally so far is weak sauce. In world news, every indication is that Europe is still going into a steep recession, and I don’t believe a damn word that comes out of China.

Until further observation, I’ve got no reason to believe that this is anything other than a gyration on the path of a lower euro, higher dollar, and presumably lower equity and commodity prices.