Wednesday, March 7, 2012


As usual.  Some decent job numbers came out today along with a bunch of self-serving statements about tomorrow's deadline for the debt swap from the Greeks and the Dow turned right around and closed up 75 or so.  Helping in no uncertain way was the announcement that the Fed was considering a new gimmick to add even more liquidity to the system while at the same time messing with long term rates by engaging in a new bond-buying program with newly created money and then borrowing back the money used to pay for the bonds as to not juice up the money supply.  At the same time the ECB announced that its balance sheet is a tad short of 4 trillion Euros puting the size of the bank at about 140% that of the Fed--which is not a bad performance whilst overseeing an economy 15% smaller than that of the United States.  Which is why I'm befuddled.  If things are going so well in our economy why is the Fed still mucking with interest rates and printing money like it's going out of style?  And why is nothing happening in Europe's economy?  And why for heavens sake is the stock market still going up?  I'm sure Little Paulie Krugman will have an explaination with the theory that all this is STILL not enough.  I've lived quite a while but I think this is the phoniest financial enviornment I have ever witnessed but maybe I'm befuddled even about that.

Tomorrow is going to be a fun day. All the good news coming out of Greece makes me highly suspicious that things may not go so well.  No reason...just a feeling.  Not having a dog in the fight makes watching it even more fun and I must admit that I am rooting for the activation of the CAC and the triggering of the CDSs and the gut wrenching, posturing and twisted logic that is sure to follow as the Euros try to figure out a way to do what they swore not to do in funding the Greeks so their banks can get bailed out.  I'm trembling with anticipation so I hope I don't get let down by everyone agreeing to the debt swap.  Assuming I'm going to have a lot to talk about tomorrow, I'm going to rest up and sharpen my wit...or have a couple of drinks.  Same thing.


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