Sugar Rush

Sugar, ah honey honey
You are my candy girl
And you've got me wanting you.

 I just can't believe the loveliness of loving you
(I just can't believe it's true)
I just can't believe the one to love this feeling to.
(I just can't believe it's true)
- Sugar Sugar, The Archies (1969 )

Or, for you bubblegum metal fans, how about "Pour some sugar on me" by Def Leppard?

Mario Draghi was the candy man today (Sorry, Sammy Davis Jr.). With his "we will do whatever it takes" rhetoric to save the euro it was like dropping Wall Street into Willy Wonka's factory. Kid in a candy shop. Yum, eat 'em up! Stock good!

Wow, the ECB chief beat the Fed Chief to the punch.

Let's think about this for a second. The Dow was down 267 points, including the Wednesday bounce, in the prior four days. It was time for some bottom fishing so the market was ready. Enter sandman, er, Draghi and his lip service lit the fuse.

Hmmm, what did Queen Merkel say about it? Is she on board? And haven't we seen this movie before? A central banker barks but the market feels no bite.

You know what happens when the sugar high wears off, as it very well may do tomorrow. You crash and burn. For you less dramatic types, it is that two o'clock feeling when your energy grinds down to nothing.

Show us the money, Mr. Draghi. And even if you do, Spain is going down. Greece cannot keep austerity and the dominos will fall.

And really, no love on Facebook and Twitter for noticing that Draghi and Drago (from Rocky) are very similar names? I even put it up on Pinterest for easy re-pinning.

Let it go, Ben

This from the Wall Street Journal this afternoon:

Federal Reserve officials, impatient with the economy's sluggish growth and high unemployment, are moving closer to taking new steps to spur activity and hiring. Since their June policy meeting, officials have made clear—in interviews, speeches and testimony to Congress—that they find the current state of the economy unacceptable. Many officials appear increasingly inclined to move unless they see evidence soon that activity is picking up on its own.

My question is move to do what?

Print more money? That just enriches banks and gives the stock market a sugar rush.
Buy more mortgages? Rates are already at all time lows. 
Cut the Fed Funds rate? Hmmm, below zero would be fun.

Just what exactly can you do? Here's a novel idea, why not ask businesses what they would like done? Guess what they do not want - more money printing. Food prices WILL be going up this year so debasing the currency is just dumb. No, the crumbling euro is not going to cover that because there are other currencies out there that will soar.

On second thought, go ahead, Ben, do it. I am already long gold - which, by the way has a lousy sentiment reading right now and a price compression to launch it into space.