SEE EUROPE YET, JAMIE?

Remember when Jamie Dimon said Europe is for the Europeans or something like that?  Wonder how that trade is working out for the World's Greatest Banker.  Dreadful public statement this morning from the head of the Commission and Jean Claude Trichet (who should know better) started the whole thing off.  If you don't have something positive to say, just shut up but these guys haven't learned that yet.  Further, Frau Merkel had better start being consistant in her policy statements to her European colleagues and her voters: either she's prepared to tell both that Germany, for the foreseeable future is going to own Europe or she isn't.  She has very little time left because this thing is headed south without a clear and unambiguous statement of support.  Once again, it's all about confidence and at this stage there is no confidence in European political leadership.

Unfortunately, not much is better over here although with all the talk of the past few weeks concerning the default of the United States, the flow of money into Treasuries today at every maturity was stunning with the short bills actually producing a negative return for a brief period.  The Bank of New York actually told major depositors that they were going to start charging for deposits.  Can you imagine?  A bank that doesn't want money?  Sounds positively Swiss to me.  Of course the stock market, following the lead of Europe absolutely tanked with the DOW down over 500 at the close.  Tomorrow's job number has every chance of being awful again so God knows in what that will result.  There is real talk of a double dip, the chance for QE III was put at 75% by one talking head economist today and the realization is finally sinking in that the administration has no strategy, no plan and no clue other than The Leader's re-election.

The one bright note was the increasing jabber about The Suit wanting out (wouldn't you?) but that was immediately followed by the suggestion that Jon Corzine, forner head of Goldie and Destroyer of New Jersey wants the job and if not him then the afor-mentioned Jamie Diamon (I doubt it) or Jeff Emmelt of GE, known among the holders of the stock as Jeff Melt-Down.  Erskine Bowles name has popped and I know of a few people whose opinions I respect that have said that the guy is terrific--if so, I ask, why would he want to be part of this administration?

Look, there's really not much I can add to this truly awful situation that you haven't already figured out.  There is no confidence out here in the fly-over zone and I suspect that's the same where you live.  I'm going to wait for the number tomorrow and see what that brings and then see if anyone has a sense of how and to where we move forward.  Remember, it's August.  I don't like August.