TWO IN A ROW

If you are all-in with the administration today's jobs number was Goldilocks---not to strong, not to weak.  If you are a fairly neutral observer, it didn't quite stink but it wasn't any good either.  Coupled with a lack of anything positive Over Here, continued economic gloom Over There and no real progress with Mr. Putin and his band of thugs, the outlook worsened across the board.

One bright spot was the announced 72 hour cease fire in Gaza which lasted all of 90 minutes with the killing of two Israeli soldiers and the apparent capture of another.  Israel reacted in fury and The Leader actually placed the blame squarely on Hamas for the renewed hostilities.  Where that takes us is any body's guess.  To an ugly weekend I suppose.

As predicted, the Argie Bargies ran into a pretty hot U.S. Circuit Court judge today in the scheduled hearing which resulted in no movement whatsoever and in the Argies renewing their claims that the Judge was bias.  I'm wondering as to the question of despite the millions in fees that Cleary is earning in the representation of Argentina,  whether there is a point where a law firm simply throws up its hands and says, "I just can't deal with these morons any more."  I mean, come on guys, I know dumb is a synonym for annuity but how rich do you really have to be before you begin to lose your self-respect?  I'm sure the well known firm of Sue, Grabbit & Run would be happy to step in which is about what these clowns deserve.  There is certainly a deal to be done but the Argies have turned this entire fiasco into a domestic political issue with the party in power hoping that its stance will give it a leg up in the next elections.  Probably, except that things are getting a bit stickier on the financial.

There is a lot of credit insurance out there and today in record time the ISDA announced that there indeed had been a credit default which means the writers of the CDOs may have to pony up if a compromised is not reached.  Problem is no one know who wrote this stuff or for how much so the longer this hangs around the longer folks are going to be looking over their shoulders.  Confidence and certainty is the glue that binds financial markets.  Markets do not like a state of affairs like this.  Think we're having fun now?  It could get waaaaay better.

Have a good weekend.