Today was a bad day. No, take that back. Today was an awful day. You might have noticed that the Dow was off almost 270 points at the close. What you may have missed is that the 10 year yield fell below 3.00% I'm sure cries of, "They love us" will be coming out of D.C. tomorrow morning whereas nothing could be further from the truth. Consumer confidence was down 10 points, China reporting amounted to a reversal of the optimism of previous weeks, riots in Greece, rumors about a lousy job number on Friday and a broadening understanding that for The Leader the G 20, if not a disaster, was somewhat short of a triumph. To top in all off, the speech he made on Sunday was a bit short on content and long in petulance with the other attendees making it very clear that if they were listening not a one of them cared. It's bloody spooky to realize that the revitalization of the world's economy is more and more dependent on Brazil whose short term future is highly dependent upon a result in the Quarter finals. Spooky, indeed. I mouthed the word "deflation" the other day; perhaps I should now begin to whisper it. As for loving us, this is a flight to quality the likes of which I can't really remember and in this case, quality is defined as the ownership of the printing press, certainly nothing more substantive than that.
We are going to deal with the situation in the Euro Zone for the rest of the week but following up on yesterday's piece, all is not well in Senate land as to the passage of this fiscal monstrosity...or so says the popular press at least. For the life of me cannot imagine the Dems not getting the votes they need to get the thing through for not to do so would be akin to a vote of no confidence if we were a parimentary state, then again...There's a bit of research and reading I have to do and I want to see how markets react overnight so I'm going to cut this short. Later.
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