Tuesday, April 23, 2013


...because I haven't digested all that Massimo had to say in a very late (for him) phone call today.  Apparently, it had gotten late rather early today and clearly, he was in neither a good nor optomistic mood.  Among his best was,

"...They think he's gonna do good. Ba! Do good?  Do good for him means he no die!  He's 87!"

It got worse.  More tomorrow.

Anyway, the numbers out of Europe stank and particularly those out of Germany.  Needless to say, the Borses, for the most part, went up.  Why?  Because there is now more certainty the the ECB will continue to print even more money driving interest rates lower along with the great liquidity engines of the Fed and the Bank of Japan.  After listening to Massimo today one would think bond yields for Italy couln't be a a 6 month low.  They pretty much are.  As we alluded to yesterday, in anything that really counts, the Central banks of the world aid nothing, simply creating enormous distortions and keeping dead banks alive for purely political reasons because there is no agreement as to how to kill them.  The Cypruses of the EU survive because they are though necessary to preserve the Union while truly destructive policies such as the all-reaching financial transaction tax serves to drive an even-greater wedge between members.  But it's quiet today and to some, quiet means improvement.  Hell, I'm probably going to be found wrong again but I just dont get it.

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