Friday, June 29, 2012

For the 38th time Europe is Saved!!!

Well, after the buzz of the EuroCup semifinals wore off, the major players decided to go all in on their proposed bailout of one another.  The details are sparse but all the markets needed to hear was "we'll be buying everything you are selling" which is exactly what the market has grown to demand.  Complete government support of the markets at all times or else the banks threaten to crash the markets.

The timing of this is very convenient because it is causing a 1.5-3% jump in stock prices right at the end of the quarter.  If the market would have ended flat today it would have been unchanged for the year 6/30/11 to 6/30/12.  That would have meant meaningful underperformance by many large pension funds that price their assets on 6/30.  Today's "insta-rally in a can" will ensure at least a positive return for the year and lessen the blow for these funds.

This also begs the question: who knew what and when about this deal?  The US markets soared about 100 pts in the blink of an eye yesterday on no news.  Well, we now know what the news was but it wasn't public at the time of the rally so someone had insights that the rest of us only wish we had (hint, hint for the SEC - it was probably the same person that bought 50,000 E-mini S&P 500 futures).

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To quote my favorite t-shirt - Stand back: I'm going to try Science!


The US Army has developed a laser that can be used to direct lightning bolts at a target.  So now miltants won't have to just worry about insect sized drones but attacks from killer lightning bolts as well. 
Who sits around in a room saying "You know what we need?  A way to control lightning so we could point it a target."?  I think I need that job.
Finally, a little Friday fun - cracking an egg under 60 feet of water, just because we can. 



Cheers!


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