Kudos to MMs

Buffett Doubts Euro Survival; Says System Is Flawed

"...“17 countries in the world gave up the right to issue bonds in their own currency. That is 100 degrees away from being able to issue them in your own currency like the United States,” he said. “The situation there is fundamentally different.”"

http://www.cnbc.com/id/45382630

What is funny is, having being able to issue bonds would probably have put them in a far worse situation. At least, there is some hope they can turn things around since their debt, while big, isn't what it would be if they had borrowed even more! On the other hand, the Chinese would have had alternatives to our bonds, and we probably would have been forced to have more fiscal discipline.

The situation is dire, but this is Monday Morning QB'ing.
 
The lift off the low of about 1183 is not to be taken as a good sign. It is in fact probable. The huge sell off will come sometime this week.
 
Quote from nitro:

Don't be fooled that this selloff has to do with SuperCommitte or with MF Global. Those things are adding to the under current of poor performance ahead by maybe 10 handles, but it is not anywhere near the fulcrum of the problem, which is glaringly obvious to anyone that isn't stuck in a hole in the Saharan Desert.

In fact, there is clear signs that the two parties agree with each other at this point on core issues, but cannot pull the trigger and will leave it to voters. It is always funny to me when people use "buy the rumor sell the news" when it is to their advantage, but not when it is not. No one in the entire solar system expected anything to happen at the SC, and markets had ALREADY priced that in.
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"..."We think the fiscal drag from just not having that stimulus is about 1.5%," he told me alluding to the $1.2 trillion in automatic spending cuts the stalemate triggers. "So if you're expecting 1% growth, and you get that 1.5% drag, the U.S. goes back into recession. We will now have fiscal drag coming out of the U.S. and Europe at a time when the global economy is struggling a bit to keep firing on all cylinders...""

http://www.cnbc.com/id/45402567

The whole notion of an "official" recession as two negative growth quarters is absurd to me, but it is what it is. By all imaginable measures the world is in recession NOW, with some countries facing depressions. US markets are no where near caught up with that notion.
 
"No Deficit Deal: US at Risk for Downgrade, Stock Correction"

"...“Failure to reach agreement on at least the minimum required savings will reflect poorly on Congress and the S&P 500 could fall by 10 percent to 1100,” said David Kostin, Goldman Sachs equity strategist, in a note. “The wide range of possible outcomes on both the super committee process and the unstable political economy in Europe drives our view that investors should assume the worst while hoping for the best.”..."

I say it corrects 10% no matter what. The SC event (of no resolution) was already priced in. Are these guys kidding? How many times do you have to get slapped in the face to believe that government, or at least Congress, is in cemented stalemate? I tell you, these people either have short memories, or are eternal optimists.
 
Quote from shortie:

OFV = David Kostin

Shortie Sherlock Out :cool:
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OFV is waaaaaaaaaaaaaaaaaaaaaaaay smarter than any human being because it is cold, hard, FACTS.
 
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