Thursday started with a bang as the ECB chief pledged the first born children of every German citizen to save the euro. Friday, the fun continued as the world was lovin' itself some central bankers even though US economic news was lousy. Bring it on! The worse the news the more likely for a helicopter sighting.
From Wikipedia - The phrase "when pigs fly" is an adynaton — a figure of speech so hyperbolic that it describes an impossibility.
Well, in the stock market, the PIIGS were certainly on the wing over the past few days. Spain up 16% from Wednesday's close through intraday Tuesday. Italy 12%. Even Germany was up 7%. Greece did not move much since it is already dead.
Maybe it was magic lipstick they slapped on these failing economies (not Germany). Rather, it was another dose of free money - or the prospects of more money - that made a dead man come alive (cleaned up to be less Jaggeresque).
Guess what? People are getting wise the the game. Each dose of QE resulted in smaller and shorter lasting gains. If "everyone" now expects more money printing, guess what the market will do when it happens. Hint - it won't go up at least not after the knees stop jerking.
Short of hugs and kisses across the aisle in DC, you should be preparing for a plunge. Mario Draghi has set us up for disappointment and the market hates that.
You know that I care what happens to you,
And I know that you care for me.
So I don't feel alone,
Or the weight of the stone,
Now that I've found somewhere safe
To bury my bone.
And any fool knows a dog needs a home,
A shelter from pigs on the wing.
- Pink Floyd, Pigs on the Wing (1977)
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