Tuesday, August 09, 2011

Calm before the storm?

Well, after a wild ride overnight, the futures are nearly flat and stocks in Europe have stabilized. All is well, right? Well.......

Here's how we got to this point since we went to sleep:

* The European Central Bank (their Fed) has again entered the market buying Italian and Spanish bonds.

* Greece and South Korea announced bans on short selling. I won't go into why this is a terrible idea that leads to FURTHER stock market declines. I'll let the Greek's and Korean's find out for themselves in about 3 weeks.

* Taiwan’s government gave up trying to act as an independent observer and actively BOUGHT STOCKS IN THE MARKET.

* However, the biggest cause of the spike has been the widely rumored emergency Fed announcement. Goldman came out today practically begging for a new round of easing and what Goldman wants, Goldman usually gets.

More to come throughout the day.

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