Archive - Nov 24, 2011 - Story

The entire hopium driven rally from yesterday afternoon on a Reuters report that Germany may be warming up to the idea of Eurobonds destroyed by one word out of place, in this case Merkel's who just said that "she stands firmly against joint Euro-bonds." Translation: market will have to punish EURUSD far more for her to change her mind.

It is in French but it is really a body language kinda gig. They promise to do everything they have to save the euro. In other words they are as clueless as always. The important thing is that Sarkozy just said they have agreed to abstain from making demand on the ECB. So...no more pressure to monetize?

Just a step behind the Chinese as usual, and just in time to kill a modest EURUSD rally. Also on the same day as the first mass strike in Portugal which reminds us that everyone will want a piece of the debt reduction pie.